Advanced Micro Devices (AMD) shares surged premarket after partnering with OpenAI to deploy up to 6 gigawatts of AMD Instinct GPU power for AI infrastructure. This includes a 1-gigawatt rollout in late 2026 and future expansions. The agreement also involves hardware and software development collaboration, with AMD issuing OpenAI a warrant for up to 160 million AMD shares.

AMD’s CFO anticipates the partnership could generate “tens of billions of dollars in revenue.” AMD stock hit a 52-week high of $219.99, a 33.59% increase. This news followed Nvidia’s $100 billion commitment to OpenAI, planning to deploy at least 10 gigawatts of Nvidia systems, creating competitive pressure in the AI market.

Nvidia’s partnership with OpenAI strengthens its global AI presence and increases pressure on competitors like Broadcom and AMD. The $100 billion deployment is seen as a strategic use of free cash flow, with projected margins of 40–50% on AI revenue streams. Bank of America Securities estimates the partnership could bring $300-500 billion in long-term revenue.

Read more at Yahoo Finance: ChatGPT Parent OpenAI, AMD Partner In Landmark AI Deal