AMD’s shares surge on deal to supply AI chips to OpenAI

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The woody besides gives the ChatGPT creator the enactment to bargain upto 10 percent of AMD.

Published On 6 Oct 2025

United States chipmaker AMD volition proviso artificial quality chips to OpenAI successful a multi-year woody that would bring successful tens of billions of dollars successful yearly gross and springiness the ChatGPT creator the enactment to bargain up to astir 10 percent of the company.

Shares of the chipmaker surged much than 34 percent connected Monday erstwhile the woody was announced, putting them connected way for their biggest one-day summation successful much than 9 years and adding astir $80bn to the company’s marketplace value.

Deal helps ‘validate technology’

The statement intimately ties the startup astatine the centre of the AI roar to AMD, 1 of the strongest rivals of Nvidia, which precocious agreed to marque important investments successful OpenAI.

Analysts said it was a important ballot of assurance successful AMD’s AI chips and bundle but is improbable to dent Nvidia’s dominance, arsenic the marketplace person continues to merchantability each AI spot it tin make.

AMD executives expect the woody to nett tens of billions of dollars successful yearly revenue. Because of the ripple impact of the agreement, AMD expects to person much than $100bn successful caller gross implicit 4 years from OpenAI and different customers, they said.

The chipmaker is expected to study gross of $32.78bn this year, according to LSEG data. In contrast, analysts are expecting Nvidia to study gross of $206.26bn for the existent fiscal year.

“AMD has truly trailed Nvidia for rather immoderate time. So I deliberation it helps validate their technology,” said Leah Bennett, main concern strategist astatine Concurrent Asset Management.

Shares of Nvidia dipped much than 1 percent.

OpenAI CEO Sam Altman said the AMD woody volition assistance his startup physique capable AI infrastructure to conscionable its needs.

It was not instantly wide however OpenAI would money the tremendous deal.

OpenAI, which is valued astatine $500bn, generated astir $4.3bn successful gross successful the archetypal fractional of 2025 and burned done $2.5bn successful cash, according to media reports.

In September, Nvidia announced a woody to proviso OpenAI with astatine slightest 10 gigawatts worthy of its systems.

In opposition with the startup’s woody with AMD wherever it volition instrumentality a involvement successful the chipmaker, Nvidia volition put $100bn successful the ChatGPT parent nether the presumption of the statement announced successful September.

Taking a involvement successful AMD could springiness OpenAI “the powerfulness to perchance power firm strategy. With Nvidia, OpenAI is simply the lawsuit and not a part-owner,” said Dan Coatsworth, caput of markets astatine A J Bell.

OpenAI has worked with AMD for years, providing inputs connected the plan of older generations of AI chips.

The startup and its main backer, Microsoft, announced past month that they had signed a non-binding statement to restructure OpenAI successful to a for-profit entity.

A idiosyncratic acquainted with the substance said the woody with AMD does not alteration immoderate of OpenAI’s ongoing compute plans, including that effort oregon its concern with Microsoft.

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