OpenAI and Advanced Micro Devices have reached a deal that could see Sam Altman's company take a 10% stake in the chipmaker.
AMD stock skyrocketed more than 35% on Monday during premarket trading following the news.
OpenAI will deploy 6 gigawatts of AMD's Instinct graphics processing units over multiple years and across multiple generations of hardware, the companies said Monday. It will kick off with an initial 1-gigawatt rollout of chips in the second half of 2026.
Tune in at 9:30 a.m. ET as OpenAI President Greg Brockman and AMD CEO Lisa Su join CNBC TV to discuss the chip deal. Watch in real time on CNBC+ or the CNBC Pro stream.
As part of the tie-up, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, with vesting milestones tied to both deployment volume and AMD's share price.
The first tranche vests with the first full gigawatt deployment, with additional tranches unlocking as OpenAI scales to 6 gigawatts and meets key technical and commercial milestones required for large-scale rollout.
If OpenAI exercises the full warrant, it could acquire approximately 10% ownership in AMD, based on the current number of shares outstanding.
The ChatGPT maker said the deal was worth billions, but declined to disclose a specific dollar amount.