Artificial intelligence company OpenAI has partnered with semiconductor manufacturer AMD to secure chips for its growing AI infrastructure, the companies announced Monday.

As part of the deal, OpenAI will have the option to acquire up to a 10% stake in AMD. The agreement allows OpenAI to purchase the latest high-performance graphics chips, the Instinct MI450, slated for release next year, to power its next-generation AI systems. The deal will provide a total of 6 gigawatts of computing capacity, with the first 1 gigawatt expected to be deployed in the second half of 2026. Additionally, AMD granted OpenAI a warrant to buy up to 160 million shares of its common stock, roughly 10% of AMD’s total outstanding shares. The vesting of the warrant depends on milestones related to computing power deployment and certain share-price targets.

This partnership follows OpenAI’s $100 billion agreement with Nvidia last month, which added at least 10 gigawatts of data center computing power. OpenAI and its partners have already installed hundreds of Nvidia GB200 AI computing racks at its Stargate data center campus in Abilene, Texas.

Barclays analysts noted that OpenAI’s deal with AMD is less about competing with Nvidia than it is about meeting the surging demand for AI computing. “While infrastructure delays are expected, this highlights the ecosystem’s urgent need for more computing capacity,” they said.

AMD shares jumped 25% premarket Monday, while Nvidia’s stock dipped slightly. OpenAI CEO Sam Altman described the agreement as “a major step in building the compute capacity needed to realize AI’s full potential,” praising AMD’s high-performance chips for accelerating AI development and making its benefits more widely accessible.

For AMD, headquartered in Santa Clara, California, the partnership strengthens its position in the AI market and signals OpenAI’s efforts to diversify its chip supply chain beyond Nvidia, whose GPU dominance has driven significant share growth amid the AI boom.