OpenAI to Pay AMD in Stock for Multi-Billion Dollar GPU Deal

[etfs]

OpenAI and AMD have announced an expanded partnership — but with a twist: OpenAI will pay using AMD’s own stock.

Under the deal, OpenAI will help refine AMD’s Instinct GPUs and purchase up to 6 gigawatts of compute capacity over several years. Instead of cash, AMD granted OpenAI stock warrants for up to 160 million shares, vesting as milestones are met.

The final tranche requires AMD to hit $600 per share — a $1 trillion market cap. Analysts say the arrangement effectively lets AMD finance OpenAI’s purchases while gaining validation for its AI chips against Nvidia. AMD shares closed up 30% at $214 after the news.

[kelson10]

OpenAI offering stock instead of full cash payment shows confidence in long-term value creation. It also strengthens AMD’s ties to the AI ecosystem against Nvidia.

[Nahid10]

This partnership could reshape GPU demand entirely. If AMD delivers, it could finally challenge Nvidia’s dominance in the AI computing market.