AMD, OpenAI Ink $32B Deal: 6GW GPU Deployment Boosts AMD's Earnings
AMD and OpenAI have inked a significant multi-year deal, with the former agreeing to deploy 6 gigawatts of its AI-focused GPUs. The announcement, made at 8:00 AM Eastern Time on October 6, 2025, sent AMD's shares soaring by 26.6%.
The agreement sees OpenAI, the renowned AI research firm, receiving a warrant for 160 million shares of AMD stock, currently valued at approximately $32 billion. This will vest as specific milestones are achieved. AMD anticipates this deal to generate tens of billions in revenue and significantly boost its non-GAAP earnings per share.
The collaboration makes AMD a core compute partner of OpenAI, lending credibility to its AI-focused GPUs. The initial phase of this partnership will involve the deployment of 1 gigawatt of AMD's Instinct MI450 Series GPUs in the latter half of next year.
The AMD-OpenAI partnership is set to bring substantial revenue and earnings growth to AMD. It also cements AMD's status as a key player in AI computing, with the first phase of GPU deployment slated for the second half of next year.
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