(MENAFN) OpenAI, the creator of ChatGPT, revealed on Monday a new partnership with semiconductor giant AMD, potentially granting OpenAI a 10% stake in the company. The agreement, which will unfold over several years, involves OpenAI deploying six gigawatts of AMD’s cutting-edge Instinct graphics processing units (GPUs) across multiple hardware generations. The rollout will begin in the second half of 2026 with an initial one-gigawatt deployment.

As part of the deal, AMD has provided OpenAI with a warrant for up to 160 million shares of its common stock. The exercise of these shares will be contingent upon AMD’s stock performance and the progress of OpenAI’s deployment. Additional share tranches will unlock as OpenAI expands its deployment to six gigawatts and hits key technical and business milestones necessary for scaling. The first tranche will be triggered by the completion of the initial one-gigawatt deployment.

If OpenAI exercises the full warrant, it could secure a stake amounting to approximately 10% of AMD, based on the current share count.

While OpenAI has yet to disclose an exact valuation, the company stated that the deal is valued in the billions of dollars.

“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” said Sam Altman, CEO of OpenAI. “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”

AMD CEO Lisa Su commented, “We are 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.”

The announcement sent AMD’s shares soaring by more than 35% in pre-market trading on Monday.

The deal marks a significant move for OpenAI, following its massive $100 billion equity and supply agreement with Nvidia in September. That partnership, which also included long-term hardware supply and capital investment, saw Nvidia acquire a share in OpenAI, in contrast to the current agreement with AMD.

MENAFN07102025000045017169ID1110160607