
Advanced Micro Devices (NASDAQ: AMD) surged more than 27% in pre-market trading on Monday after announcing a strategic multi-year artificial intelligence partnership with OpenAI, the developer of ChatGPT.
The landmark deal involves both a large-scale chip supply and a 10% equity component, tying OpenAI’s success directly to AMD’s growth.
Under the agreement, OpenAI will deploy 6 gigawatts of AMD GPUs over multiple generations, starting with the Instinct MI450 series in 2026, and will receive a warrant to purchase up to 160 million shares of AMD stock at a nominal price if specific milestones are met.
OpenAI co-founder and CEO Sam Altman called the partnership “a major step in building the compute capacity needed to realize AI’s full potential.”
The partnership marks a major strategic win for AMD as it looks to expand its share of the AI hardware market, dominated by Nvidia (NASDAQ: NVDA).
AMD (NASDAQ: AMD) Stock Continues Surge
AMD shares closed Friday at $164.67, down 2.98% for the session, but soared more than 27% in pre-market trading.
The rally builds on steady gains in recent months. AMD is up nearly 9% over the past month and 97% over the past six months, approaching its 52-week high of $186.65 before Monday’s breakout.
The agreement could yield tens of billions in revenue over the coming years and expand AMD’s footprint across the fast-growing generative AI industry.
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