AMD (AMD) Stock; Jumps Almost 38% After Multibillion-Dollar AI Deal with OpenAI

TLDRs:

• AMD stock surged nearly 38% after announcing a 6-gigawatt GPU deal with OpenAI.
• OpenAI will receive up to 160 million AMD shares if deployment milestones are met.
• The deal could generate tens of billions in revenue over five years.
• The surge follows Hitachi’s 7% rally last week after its own AI collaboration with OpenAI.

Shares of Advanced Micro Devices ($AMD) exploded nearly 38% in premarket trading on Monday, after the company and OpenAI jointly announced a multibillion-dollar partnership to build massive AI data centers powered by AMD’s next-generation Instinct™ MI450 GPUs.

The deal, one of the largest AI infrastructure commitments ever signed, will see OpenAI deploy up to 6 gigawatts of AMD chips over multiple years, with the first 1 gigawatt deployment scheduled for the second half of 2026. The collaboration will support OpenAI’s rapid expansion of computing capacity to train and serve advanced generative AI models, solidifying AMD’s position as a serious competitor to Nvidia in the AI chip race.

Under the agreement, OpenAI will receive warrants for up to 160 million AMD shares, representing roughly 10% of AMD’s outstanding stock, priced at just $0.01 per share. The warrants will vest in tranches tied to project milestones and AMD share price targets, aligning both companies’ incentives to execute the partnership successfully.

AMD and OpenAI Strengthen Their Alliance

The partnership builds on previous collaborations between the two companies involving AMD’s MI300X and MI350X GPU lines. This new phase marks a multi-generational commitment, encompassing future GPU architectures and large-scale rack systems for global AI data centers.

Sam Altman, OpenAI’s CEO, said the partnership was a key step toward meeting the massive compute requirements of advanced AI.

Greg Brockman, OpenAI’s President, added that building AI’s future “requires deep collaboration across everylayer of the stack,” emphasizing that AMD’s technical strengths make it an ideal long-term partner.

Stock Skyrockets as Investors Cheer

Following the announcement, AMD shares surged past $220, up from $164.66 at Friday’s close. Analysts said the deal could generate “tens of billions in revenue” over the next five years and significantly boost AMD’s earnings per share.

Jean Hu, AMD’s Chief Financial Officer, highlighted the financial impact.

The rally positioned AMD as the top gainer on the Nasdaq Monday morning, marking one of the company’s sharpest single-day premarket spikes in years.

Hitachi’s OpenAI Partnership Sets the Stage

The AMD surge follows a similar market reaction last week when Hitachi Ltd. ($HTHIY) shares jumped more than 7% after revealing its own AI and data partnership with OpenAI.

The Japanese conglomerate plans to integrate OpenAI’s technology into energy optimization, industrial automation, and digital infrastructure, part of its broader strategy to modernize operations through AI.

Analysts viewed both deals as evidence of OpenAI’s expanding influence across sectors, from industrial engineering to chip design,  as companies race to align with its ecosystem. Hitachi’s collaboration, announced October 2, triggered a rally on the Nikkei 225, while AMD’s announcement has now ignited Wall Street’s enthusiasm.

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