OpenAI signed a definitive agreement with Advanced Micro Devices Inc. to deploy 6 gigawatts of AMD graphics processing units over multiple years. The companies announced the deal on Monday in a statement.
Deal scope and stock-linked warrant
AMD granted OpenAI a warrant for as many as 160 million shares. The warrant will vest as the parties meet set milestones. Those targets include AMD’s stock price moving higher over time.
Future exercise points include a tranche tied to a share price of $600. AMD shares closed Friday at $164.67. The agreement could generate tens of billions of dollars in new revenue, according to the report.
Financial targets and timeline
The 6 gigawatt deployment will roll out over multiple years. The companies did not detail a specific schedule in the statement. Vesting will depend on milestone achievements tied to the project and AMD’s share price.
According to Bloomberg, AMD shares moved higher in premarket trading after the news. The report cited the potential scale of new revenue from the agreement.
Context from the announcement
The deal centers on AI infrastructure, with OpenAI set to use AMD GPUs. The companies framed the agreement as a multiyear plan with clear milestones.
The warrant terms show confidence in AMD’s future value. A tranche ties to a $600 share price level. Friday’s close was $164.67, which highlights the distance to that target.
The statement did not list specific GPU models or delivery stages. It focused on total power capacity and the warrant structure. The companies presented the partnership as a strategic effort to scale AI compute.
Bloomberg reported that the agreement could add tens of billions in revenue for AMD. The report linked share gains to the news and the size of the plan. The companies issued their statement on Monday.
