- AMD stock reached an all-time high after announcing a large stake offer to OpenAI.
- OpenAI was granted a warrant for up to 160 million shares of AMD common stock.
- NVIDIA CEO Jensen Huang described the move as “imaginative” and “unique.”
- The agreement includes a major infrastructure deal, starting with the deployment of AMD’s Instinct MI450 GPUs in 2026.
- The partnership is seen as a significant challenge to NVIDIA’s position in the AI chip sector.
AMD shares climbed to a record $230.36 on Wednesday after the company revealed it had offered OpenAI a 10% equity stake. The deal was part of a broader infrastructure partnership announced earlier in the week.
On Tuesday, AMD confirmed it had reached an agreement granting OpenAI a warrant for up to 160 million shares. Under this arrangement, AMD will begin supplying hardware for OpenAI’s next phase of AI infrastructure, with initial implementation planned for the second half of 2026.
During an interview with CNBC, NVIDIA CEO Jensen Huang called the stake offer “imaginative” and “surprising,” considering AMD’s confidence in its upcoming products. “I’m surprised that they would give away 10% of the company before they even built it. It’s clever, I guess,” Huang said.
This collaboration will launch with AMD’s Instinct MI450 GPUs in an initial 1-gigawatt deployment, expanding into future generations of AI chips and rack-level solutions. The deal positions AMD as a key hardware provider to OpenAI and marks a major step to counter NVIDIA’s current dominance in AI chips.
In September, NVIDIA announced plans to invest up to $100 billion over the next decade in OpenAI. Meanwhile, AMD’s stock price has surged, gaining more than 92% year-to-date and over 34% in the past twelve months. Investor sentiment continues to be highly positive following the news of this strategic partnership.
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