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AMD shares soared 30% on Monday after OpenAI announced plans to take a 10% stake in the chipmaker as part of multi-billion-dollar AI hardware partnership.
The deets: OpenAI will deploy 6 gigawatts of AMD’s Instinct GPUs over the next few years, starting with 1 GW in 2026.
In simple terms, that much computing power could train and run multiple ChatGPT-scale models at once, enough to power a nation’s worth of AI processing.
The deal also gives OpenAI the option to buy up to 160 million AMD shares in the future. It can do so only if AMD meets specific goals, such as performance targets or successful chip deployments.
Why it matters: for OpenAI, this deal is all about reducing its heavy reliance on Nvidia, which currently dominates the AI chip market and controls much of the global GPU supply.
By partnering with AMD, OpenAI is creating a second supply line for its massive “Stargate” AI infrastructure. This ensures it has enough computing power to deploy the next generation of ChatGPT models without getting stuck behind Nvidia’s production limits.
For AMD, this marks a long-awaited comeback. After years of playing catch-up with Nvidia in the AI chip race, Monday’s record stock rally, its biggest in years, showed that investors finally see it as a serious contender in the generative AI boom.
Background: OpenAI is on a full-blown partnership spree, locking in deals across the AI hardware and infrastructure stack.
Just two weeks before the AMD announcement, it signed a $100 billion supply-and-equity pact with Nvidia for 10 gigawatts of compute power.
And only days later, it joined hands with Hitachi to collaborate on AI-driven energy and data solutions, showing how OpenAI is expanding beyond software to build a complete ecosystem of AI, power, and compute infrastructure.
Big theme: as OpenAI plans to open its first India office in India, it looks like the race for AI infrastructure and data control is heating up.
For India, which is already pushing big on data centres, semiconductors, and AI regulation, this could accelerate its ambitions to become a global AI powerhouse.
