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Advanced Micro Devices (AMD) shares were up more than 32% after the company agreed to supply Microsoft (MSFT)-backed OpenAI with 6 gigawatts of graphics processing units as part of a multiyear deal.

The first 1 gigawatt supply of AMD's Instinct MI450 GPUs will start in H2 2026, according to the joint statement.

The companies said that AMD has issued OpenAI a warrant for up to 160 million AMD common shares, structured to vest upon the achievement of certain milestones, including specific share-price targets.

The first tranche will vest with the preliminary 1 gigawatt deployment, with additional tranches due to vest as purchases reach up to 6 gigawatts, the companies said.

Microsoft has a long-standing partnership with OpenAI, starting with a $1 billion investment in 2019.

Price: 218.33, Change: +53.66, Percent Change: +32.58