In a strategic move that reshapes the artificial intelligence chip landscape, Advanced Micro Devices (AMD) has announced a monumental, multi-year partnership with OpenAI. The agreement, which could be worth tens of billions of dollars annually to AMD, signals a formidable new challenge to Nvidia’s current market stronghold.

The collaboration is centered on AMD’s next-generation MI450 series GPUs. Starting in the latter half of 2026, OpenAI plans to deploy hundreds of thousands of these processors within a new, dedicated one-gigawatt data facility. AMD leadership projects that the deal’s total value, when factoring in its broader industry impact, could surpass $100 billion over a four-year period.

A key financial component of the agreement involves a stock warrant granted to OpenAI, allowing the AI pioneer to acquire up to 160 million shares of AMD stock for a nominal fee. This warrant is structured to vest upon meeting specific shipment milestones and stock price targets, effectively giving OpenAI the option to own a stake of up to roughly 10% in the chipmaker.

For OpenAI, CEO Sam Altman emphasized that this partnership is crucial for securing the advanced computing power required to fuel its ambitious AI research and product development. The announcement had an immediate and seismic impact on Wall Street, propelling AMD’s stock to its most significant single-day percentage gain in nearly a decade and adding approximately $80 billion to its market capitalization in a single session.

This blockbuster deal firmly establishes AMD as a primary AI hardware alternative for leading tech firms and arrives shortly after Nvidia publicized its own major supply agreement with OpenAI, setting the stage for an intensified rivalry.