AMD (AMD) and OpenAI announced a six gigawatt agreement for AMD chips to power OpenAI’s artificial intelligence infrastructure. The first gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second half of 2026. Under the agreement, OpenAI will work with AMD “as a core strategic compute partner to drive large-scale deployments of AMD technology starting with the AMD Instinct MI450 series and rack-scale AI solutions and extending to future generations.” AMD has issued OpenAI a warrant for up to 160M shares of AMD common stock, structured to vest as specific milestones are achieved. The first tranche vests with the initial one gigawatt deployment, with additional tranches vesting as purchases scale up to six gigawatts. Shares of AMD are up 23%, or $37.91, to $202.58 in premarket trading.
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