AMD shares surge 37% in pre-market trading after multi-billion dollar deal with OpenAI

Shares of chipmaker Advanced Micro Devices Inc. (AMD) are up 37% in pre-market trading on Monday, October 6, after the company announced a multi-billion dollar deal with Sam Altman's OpenAI.

The two companies signed a definitive agreement before market open, under which, OpenAI will deploy 6 gigawatts (GW) of AMD Graphics Processing Units (GPUs) over multiple years.

OpenAI has also been issued warrants for as many as 160 million shares or 10% stake in AMD, which will convert as subsequent milestones are achieved. The targets require AMD's stock price to continue rising in value as one of the tranche will even vest at $600 apiece. AMD shares had closed Friday's trading session at $164.

The announcement comes just two weeks after Nvidia, AMD's direct competitor and the most valued company in the world, announced that it will invest as much as $100 billion in OpenAI to build AI infrastructure and new data centers, which will have a capacity of at least 10 GW power.

Excited

to partner with AMD to use their chips to serve our users!

This is all incremental to our work with NVIDIA (and we plan to increase our NVIDIA purchasing over time).

The world needs much more compute...

— Sam Altman (@sama) October 6, 2025

It is still unclear how Sam Altman and OpenAI will finance the huge capital requirements to set up the data centers. Earlier, he spoke about a "new kind" of financial instrument, without elaborating much on the details.

In a statement about the new deal, Chief Executive Officer Lisa Su said that AMD was “thrilled to partner with OpenAI to deliver AI compute at massive scale.” Altman called the partnership “a major step in building the compute capacity needed to realize AI’s full potential,” adding that AMD’s “leadership in high-performance chips” would help OpenAI bring its technology to more people faster.

AMD's AI GPU revenue is expected to reach $6.55 billion this year and the deal with OpenAI will be accretive from next year and accelerate from 2027. Executives expect the deal to take AMD's overall topline past $100 billion but did not elaborate on the timeframe.

The first gigawatt of chips will rollout in the second half of 2026, which is when the first tranche of warrants issued to OpenAI by AMD will also vest.

While shares of AMD are up as much as 37% in pre-market trading, those of Nvidia are down 1.5%.

(With Inputs From Agencies.)