OpenAI-AMD Deal: Potential $100 Billion Opportunity for AMD

Staff Reporter | PNN

On October 8, 2025, artificial intelligence company OpenAI and chip manufacturer AMD announced an expanded partnership in which OpenAI will purchase gigawatt-scale computing power from AMD. Interestingly, OpenAI will not pay cash directly for the purchase; instead, it will settle the bill through AMD share warrants.

Under the agreement, OpenAI will assist in the development of AMD’s Instinct GPU line and will purchase six gigawatts of computing power over several years. AMD has stated that the deal will generate billions of dollars in revenue for the company.

OpenAI has been granted up to 160 million AMD share warrants, which will vest in stages upon achieving specific targets. These targets include a rise in AMD’s share price, with the final stage requiring the share price to reach $600. Currently, the share price is approximately $150, which rose to $214 at Monday’s market close following the announcement.

Analysts believe OpenAI may sell shares in phases to pay off the purchase, effectively allowing AMD to finance this customer’s procurement. UBS analyst Timothy Arcuri stated, “This deal validates AMD’s AI GPU capabilities, which is significant for other cloud and AI customers as well.”

Additionally, OpenAI’s endorsement provides AMD with a significant marketing advantage, enabling it to increase GPU sales to cloud service providers.

In this way, OpenAI’s long-term purchase of AMD GPUs will be largely funded by retail and institutional investors in the stock market. By reducing upfront financial burdens, AMD gains significant market exposure. UBS estimates that this partnership could increase AMD’s market share by approximately 30 percent.

Although analysts suggest that the deal is “less attractive” compared to NVIDIA, it demonstrates the credibility of AMD’s roadmap and may attract other customers in the future.