The agreement also offers ChatGpt creators the option to buy 10% of AMD.
Released on October 6, 2025
US chip maker AMD offers Open Eye artificial intelligence chips on multi-year contracts that bring billions of dollars of annual revenue, giving ChatGPT creators the option to buy around 10% of the company.
Chipmaker’s shares surged more than 34% on Monday, when the deal was announced, steadying its biggest day growth in more than nine years, adding about $800 billion to the company’s market value.
Recommended Stories
List of 4 itemsEnd of the list
The latest in a series of investment commitments highlights the greedy appetite of Openai and the broader AI industry as companies compete to develop AI technologies that meet or exceed human intelligence.
“We consider this transaction to be certainly transformative not only for AMD but for industry dynamics,” Forestnorod, executive vice president of AMD, told Reuters.
Transactions help to “verify technology”
The deal closely links startups at the heart of the AI boom to AMD. AMD is one of Nvidia’s strongest rivals, which recently agreed to invest heavily in Openai.
Analysts said that while it is a key vote of trust for AMD’s AI chips and software, it is unlikely that Nvidia will stop controlling as market leaders continue to sell all the AI chips they can do.
AMD executives expect the transaction to be a net worth tens of millions of dollars in annual revenue. Due to the ripple effects of the contract, AMD expects to receive more than $100 million in new revenue over four years from Openai and other customers, they said.
According to LSEG data, the chipmaker is expected to report revenue of $32.788 billion this year. In contrast, analysts expect NVIDIA to report revenue of $20.626 billion this year.
“AMD has dragged Nvidia for quite some time, so I think it will help validate their technology,” said Leah Bennett, chief investment strategist in simultaneous asset management.
Nvidia’s shares fell more than 1%.
Openai CEO Sam Altman said AMD’s deal will help his startups build enough AI infrastructure to meet their needs.
It was not immediately clear how Openai would fund the enormous deal.
According to media reports, Openai, valued at $500 million, generated approximately $4.3 billion in revenue in the first half of 2025 and burned $2.5 billion in cash.
In September, Nvidia announced an agreement to provide Openai with a system worth at least 10 gigawatts.
Nvidia will acquire shares in Chipmaker, as opposed to its agreement with AMD to acquire shares in Chipmaker, based on the terms and conditions announced in September.
By acquiring shares in AMD, Openai “power to potentially influence corporate strategy. With Nvidia, Openai is simply a client, not a part of its owner,” says Dan Coatsworth, AJ Bell’s market head.
Openai has been working with AMD for many years to provide input on the design of older generations of AI chips.
The startup and its main backer Microsoft announced last month that it had signed a non-binding agreement to restructure OpenAI into a for-profit company.
Those familiar with the issue said that the deal with AMD will not change Openai’s ongoing calculation plans, including its efforts and partnerships with Microsoft.
