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SANTA CLARA - AMD (NASDAQ:AMD) and OpenAI announced Monday a strategic partnership for the deployment of 6 gigawatts of AMD Instinct GPUs to power OpenAI’s artificial intelligence infrastructure across multiple generations. AMD, currently valued at $267 billion and showing remarkable momentum with a 92% surge over the past six months, continues to strengthen its position as a prominent player in the semiconductor industry. According to InvestingPro analysis, the company maintains a strong financial health score and robust growth prospects.
The agreement includes an initial 1 gigawatt deployment of AMD Instinct MI450 Series GPUs scheduled to begin in the second half of 2026, according to a press release statement.
Under the terms of the deal, OpenAI will work with AMD as a core strategic compute partner for large-scale deployments starting with the AMD Instinct MI450 series and extending to future generations. The companies will share technical expertise to optimize their product roadmaps, building on a collaboration that began with earlier MI300X and MI350X series.
"This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem," said Dr. Lisa Su, chair and CEO of AMD.
OpenAI co-founder and CEO Sam Altman stated that "AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster."
As part of the agreement, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones are achieved. The first tranche vests with the initial 1 gigawatt deployment, with additional tranches vesting as purchases scale up to 6 gigawatts. Based on InvestingPro’s Fair Value analysis, AMD is currently trading above its estimated Fair Value, reflecting strong market confidence in this strategic move. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of AMD’s valuation metrics and growth potential.
AMD Chief Financial Officer Jean Hu indicated the partnership is expected to deliver "tens of billions of dollars in revenue for AMD" and be "highly accretive to AMD’s non-GAAP earnings-per-share." The company has demonstrated strong financial fundamentals, with revenue growing at 27% year-over-year and maintaining a healthy current ratio of 2.49. InvestingPro subscribers can access 15+ additional exclusive insights about AMD’s financial health and growth prospects.
AMD will hold a conference call today at 5:00 a.m. PT to discuss the announcement and will report its fiscal third quarter 2025 financial results on November 4, 2025.
In other recent news, ASMedia Technology received a downgrade from BofA Securities, which adjusted its rating from Buy to Neutral due to rising uncertainty related to AMD, a significant revenue source for the company. BofA also lowered the price target for ASMedia Technology to NT$1,660, citing concerns over its growth profile. Meanwhile, AMD has entered a multi-year agreement with IBM to provide AI infrastructure to Zyphra, utilizing AMD Instinct MI300X GPUs on IBM Cloud. This partnership is expected to enhance Zyphra’s AI research capabilities, with further expansion planned for 2026. Additionally, AMD announced an expanded collaboration with Cohere, allowing Cohere’s AI models to run on AMD Instinct GPU-powered infrastructure and integrating Cohere’s North platform into AMD’s enterprise AI portfolio. In another development, Nvidia’s partnership with Intel was highlighted as William Blair reiterated an Outperform rating for Nvidia. This collaboration involves integrating Intel’s CPUs with Nvidia’s NVL72 racks using NVLink technology, aiming to address a broader segment of the PC market.
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