Shares of Advanced Micro Devices Inc., a U.S.-based semiconductor company, surged in premarket trading Monday morning after the U.S.-based semiconductor company announced a deal to provide computing power for OpenAI’s next-generation AI systems.
The companies described the deal, announced on Monday, as a “win-win,” saying it will enable very large-scale AI deployments and advance the entire ecosystem.
AMD shares are up more than 35% as of 8:30 a.m. ET.
AMD agreed to provide enough of its graphics processing units (GPUs) to support 6 gigawatts of computing power for OpenAI’s next-generation AI systems. A GPU is a type of computer chip that handles complex calculations quickly and is particularly useful for training AI models.
In the first phase of the deal, which will begin in the second half of 2026, OpenAI will use 1 gigawatt of AMD’s upcoming MI450 chips, which are AMD’s next-generation GPU model.
“Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout,” said AMD CFO Jean Hu.
AMD issued OpenAI a warrant for up to 160 million shares of AMD common stock that will vest as certain milestones are achieved.
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