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 23.71% on Monday 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.
"We have to do this," OpenAI President Greg Brockman told CNBC's "Squawk on the Street." "This is so core to our mission if we really want to be able to scale to reach all of humanity, this is what we have to do."
Brockman added that the company is already unable to launch many features in ChatGPT and other products that could generate revenue because of the lack of compute power.
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.