AMD and OpenAI announce 6-gigawatt GPU partnership with AMD stock warrant

AMD and OpenAI announced a multi-year agreement to deploy 6 gigawatts of AMD Instinct GPUs across multiple future chip generations, with the first gigawatt — built on AMD’s MI450 — targeted for the second half of 2026. It was OpenAI’s second multi-gigawatt hardware commitment in under three weeks, following its letter of intent with NVIDIA.

The financial structure attracted more attention than the compute figure. Alongside the supply agreement, AMD issued OpenAI a warrant to purchase up to 160 million shares of AMD common stock at an exercise price of one cent each. The shares vest in tranches tied to OpenAI’s GPU purchase milestones and to specified AMD stock-price targets, and the warrant is exercisable through October 2030. AMD said that if OpenAI exercised the warrant in full, it could hold close to 10% of AMD’s outstanding shares. AMD’s stock rose sharply — CNBC reported a gain of roughly 23% — on the day of the announcement, as investors read the warrant as evidence that OpenAI’s demand for GPUs was durable enough to warrant giving up a meaningful equity stake.

As with the NVIDIA letter of intent, the arrangement tied a chip supplier’s future revenue to a customer that did not disclose how it would fund the underlying purchases, deepening the pattern of interlocking compute deals across NVIDIA, AMD and, a week later, Broadcom that commentators grouped together as evidence of circular financing in the AI infrastructure build-out.