Advanced Micro Devices (AMD) has officially signed a final agreement with OpenAI to jointly advance artificial intelligence infrastructure development, with AMD expecting the partnership could generate tens of billions of dollars in new revenue. Under the agreement, OpenAI will deploy a total of 6 gigawatts (GW) of AMD GPU computing power over several years. In exchange, AMD has granted OpenAI up to 160 million stock warrants. If these warrants are fully exercised, based on AMD's current outstanding shares, OpenAI could potentially hold approximately 10% of the company's stock.

Unlike traditional procurement agreements, AMD's partnership with OpenAI extends far beyond a simple "cash for goods" transaction. As part of the collaboration, AMD granted OpenAI stock warrants allowing the purchase of up to 160 million AMD common shares at a symbolic exercise price of just $0.01. This means that once OpenAI completes chip deployment and AMD's stock price reaches specific milestones, OpenAI could acquire these shares at virtually no cost, potentially becoming approximately a 10% shareholder in the $270 billion chip giant.

Reports indicate that some warrants are tied to AMD's stock price reaching specific targets, including a batch linked to the stock reaching $600, while AMD closed at $164.67 on Friday. According to agreement details, OpenAI's deployment plan will begin in the second half of 2026, with the first batch of warrants becoming effective upon completion of the first 1 GW of computing power deployment. Subsequent portions will be unlocked as deployment scales expand and key technical and commercial milestones are achieved.

AMD CEO Lisa Su described the partnership as creating "a true win-win," enabling "the world's most ambitious AI construction plan" while "driving development of the entire AI ecosystem." OpenAI CEO Sam Altman also stated that AMD's leadership in high-performance chips will help OpenAI "bring the benefits of advanced AI to everyone faster."

This collaboration follows OpenAI's $100 billion artificial intelligence infrastructure investment with NVIDIA in September, marking another major data center initiative. NVIDIA's investment will fund new data centers with at least 10 gigawatts of power generation capacity, equivalent to New York City's peak electricity demand.

Boosted by this news, AMD's stock surged in pre-market trading, jumping over 35% at one point and touching a high of $222. Meanwhile, NVIDIA, the current dominant player in the AI chip market, saw its stock decline over 1% in pre-market trading.

AMD's partnership also focuses on competing for market share in the accelerator chip market through technological competitiveness. Although AMD still significantly trails NVIDIA in this market, its AI GPU revenue is expected to reach $6.55 billion this year. The OpenAi partnership will contribute substantial profits starting in 2026 and enter an accelerated growth phase in 2027.

For OpenAI, introducing AMD technology may help build alternatives beyond NVIDIA. Currently, NVIDIA technology accounts for a considerable portion of OpenAI's infrastructure budget with data center operators. NVIDIA's data center division alone doubled revenue to $115 billion in the latest fiscal year and is expected to continue high-speed growth in the current fiscal year.

AMD's recent success in surpassing Intel in computer processors and its successful ventures into AI-specific chips have driven its market value to historic highs, with enhanced financial strength providing support for expansion. AMD CFO Jean Hu stated: "The partnership with OpenAI is expected to generate tens of billions of dollars in revenue for AMD while accelerating OpenAI's AI infrastructure development, achieving important strategic synergies and enhancing earnings per share."

Agreement details show that the first batch of warrants will vest upon completion of the first gigawatt of computing power deployment, scheduled to begin in the second half of next year using AMD Instinct MI450 chips. Subsequent warrant vesting will be tied to AMD stock price targets and commercial and technical milestones related to OpenAI's large-scale deployment of AMD technology.

Notably, this partnership draws attention to an emerging AI "closed-loop economy" model. In this model, capital, equity, and computing power circulate among a few leading companies: OpenAI anchors massive computing demand, NVIDIA and AMD provide chips, while companies like Oracle help build data centers.

OpenAI is also reportedly in talks with Broadcom to develop custom chips for its next-generation models. This highly concentrated industry ecosystem has raised analyst concerns. They believe this tightly intertwined circular system could face real pressure if any link begins to weaken.

Additionally, this draws AMD into an increasingly intense industry debate: how the tech industry will recoup the massive spending on AI infrastructure and whether the current expansion pace is sustainable.