So, today I am looking at one of the biggest deals in the history of artificial intelligence. AMD and OpenAI announced a mega-deal that has already changed the game on Wall Street… and probably the future of technology as we know it!
Why? Because it is a multi-billion dollar agreement, a 10% stake in AMD , and a stock that skyrocketed by almost 30% in a single day! And it is 40% up in the last days.
THE DEAL
OpenAI announced that it will use 6 gigawatts of AMD’s new Instinct GPUs in a multi-year plan that spans across generations of hardware. The rollout begins with 1 gigawatt of MI450 GPUs, essentially placing AMD at the very heart of the upcoming AI infrastructure.
This initial rollout is scheduled for the second half of 2026, followed by successive upgrades as OpenAI scales its infrastructure.
At the same time, AMD is offering OpenAI a warrant for 160 million shares, which will “unlock” gradually as specific technical, commercial, and market milestones are achieved. If all conditions are met, OpenAI will own up to 10% of AMD, giving this partnership an even deeper strategic dimension.
For AMD, this deal is a huge leap forward. It gives them access to a premium client, with expected revenues in the tens of billions of dollars. Even more importantly, it ends AMD’s status as the “poor cousin” to Nvidia in the AI chip space and brings them prestige and trust. After years of chasing technologically, AMD is proving it can stand toe-to-toe in the big leagues.
The company’s CFO, Jean Hu, stated clearly that this deal could translate into “tens of billions of dollars in revenue” in the coming years. This isn’t just a commercial success—it may be the single most important step toward establishing AMD as a key player in the AI era.
For OpenAI, the agreement brings multiple benefits. First, it allows them to diversify suppliers, reducing absolute dependence on Nvidia. Second, it boosts their compute capacity at a time when GPU demand far exceeds global supply. Third, it secures access to advanced hardware that will support their next models. And finally, it creates an equity pathway into one of the most critical technology providers of the future.
WEDBUSH ANALYSIS
This is where Wedbush—one of Wall Street’s most seasoned investment firms—steps in to underline just how important this deal is. Wedbush called it a “historic moment in the AI revolution,” and even described it as a “1996 moment for technology,” comparing it to the explosion of the internet.
According to the firm’s analysts, the deal not only places AMD at the center of the AI chip cycle, but also “erases all fears” that AMD couldn’t compete head-on with Nvidia. Now AMD has both the foundation and momentum to capture share in a market expected to reach the trillions.
But Wedbush didn’t stop there. They highlighted that the AI revolution isn’t limited to Big Tech. Investment waves are already spilling into governments, energy infrastructure, public works, and businesses of every size. We’re talking about a new macro cycle, with investments that could exceed $350 billion this year alone. And we’re still at the beginning.
MARKET REACTION
The market’s response? Immediate and impressive. AMD’s stock surged 30% in a single day, hitting its highest levels in years. It was one of the most spectacular one-day reactions to a tech announcement.
Meanwhile, Nvidia slipped slightly, about 1%, as investors weighed the potential impact of new competition but of course rebounded. Let’s not forget that just days earlier, Nvidia announced a $100 billion investment in OpenAI. Still, Nvidia’s position remains strong. The key point, however, is that for the first time in a long while, AMD looks capable of capturing market share from Nvidia’s dominance.