Shares of Advanced Micro Devices (AMD) surged 38% to hit a high of $226.70 on Nasdaq after the company announced about a 6 gigawatt agreement with OpenAI to power latter’s next-generation AI infrastructure across multiple generations of AMD Instinct GPUs. The first 1 gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second half of 2026.
Under this definitive agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology starting with the AMD Instinct MI450 series and rack-scale AI solutions and extending to future generations, a company filing to the exchanges said.
"By sharing technical expertise to optimize their product roadmaps, AMD and OpenAI are deepening their multi-generational hardware and software collaboration that began with the MI300X and continued with the MI350X series. This partnership creates a true win-win for both companies, enabling very large-scale AI deployments and advancing the entire ecosystem," the release said.
The price action was accompanied with strong volume action as 123.28 million shares were trading on the Nasdaq 10:18 AM ET (7:48 pm India time).
As part of the agreement, to further align strategic interests, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones are achieved. The first tranche vests with the initial 1 gigawatt deployment, with additional tranches vesting as purchases scale up to 6 gigawatts. Vesting is further tied to AMD achieving certain share-price targets and to OpenAI achieving the technical and commercial milestones required to enable AMD deployments at scale.
Commenting on the development, AMD's Chair and CEO Lisa Su said that the company is thrilled to partner with OpenAI to deliver AI compute at "massive scale". "This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem," Su said.
Meanwhile, the headline index Nasdaq Composite was trading at 22,891, gaining 110.48 points or 0.49% over the previous closing.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Under this definitive agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology starting with the AMD Instinct MI450 series and rack-scale AI solutions and extending to future generations, a company filing to the exchanges said.
"By sharing technical expertise to optimize their product roadmaps, AMD and OpenAI are deepening their multi-generational hardware and software collaboration that began with the MI300X and continued with the MI350X series. This partnership creates a true win-win for both companies, enabling very large-scale AI deployments and advancing the entire ecosystem," the release said.
The price action was accompanied with strong volume action as 123.28 million shares were trading on the Nasdaq 10:18 AM ET (7:48 pm India time).
As part of the agreement, to further align strategic interests, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones are achieved. The first tranche vests with the initial 1 gigawatt deployment, with additional tranches vesting as purchases scale up to 6 gigawatts. Vesting is further tied to AMD achieving certain share-price targets and to OpenAI achieving the technical and commercial milestones required to enable AMD deployments at scale.
Commenting on the development, AMD's Chair and CEO Lisa Su said that the company is thrilled to partner with OpenAI to deliver AI compute at "massive scale". "This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem," Su said.
Meanwhile, the headline index Nasdaq Composite was trading at 22,891, gaining 110.48 points or 0.49% over the previous closing.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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