AMD soared 35%! OpenAI signed a chip agreement worth up to 6GW with it, and there is a possibility of holding a 10% stake through options

The AI capital frenzy has been reignited!

On Monday, October 6th, according to reports from CNBC and other media, chip manufacturer AMD has reached a strategic cooperation agreement with AI giant OpenAI.

The scale of this agreement is unprecedented. According to statements from both parties, OpenAI will deploy a total of 6 gigawatts (GW) of AMD GPU computing power over the next few years. Reports indicate that this is roughly equivalent to the average electricity demand of Singapore. The first batch of 1 gigawatt of chips will begin deployment in the second half of 2026.

As part of the agreement, AMD has granted OpenAI a warrant to purchase up to 160 million shares of common stock. If this warrant is fully exercised, based on AMD's current number of outstanding shares, OpenAI could potentially hold about 10% of the company.

AMD Chief Financial Officer Jean Hu stated in a statement that the agreement "is expected to bring AMD hundreds of billions of dollars in revenue" and "enhance the company's earnings per share."

Boosted by this news, AMD's stock price surged in pre-market trading, soaring over 35% to reach a high of $207. Meanwhile, as the current leader in the AI chip market, NVIDIA's stock price fell by 1% in pre-market trading.

Exercise price of $0.01? Deep binding: it's not just a transaction, but an equity alliance

Unlike traditional procurement agreements, AMD's cooperation with OpenAI goes far beyond a simple "money for goods" exchange.

According to the Financial Times, as part of the collaboration, AMD granted OpenAI a warrant allowing it to purchase up to 160 million shares of AMD common stock in the future, with an exercise price of only a symbolic $0.01.

This means that once OpenAI completes the chip deployment and AMD's stock price reaches specific milestone targets, OpenAI can acquire these shares at almost no cost, potentially becoming a 10% shareholder in the $270 billion chip giant.

Additionally, Bloomberg reported that the exercise of some warrants is tied to AMD's stock price reaching specific targets, including a batch related to the stock price reaching $600, while AMD's closing price last Friday was $164.67.

According to the details of the agreement, OpenAI's deployment plan will begin in the second half of 2026, with the first batch of warrants becoming effective upon the completion of the first 1 gigawatt of computing power deployment. Subsequent portions will be gradually unlocked as the deployment scale expands and key technological and commercial milestones are achieved.

AMD CEO Lisa Su stated that this collaboration creates "a true win-win," enabling "the realization of the world's grandest AI construction plan" and "promoting the development of the entire AI ecosystem."

OpenAI CEO Sam Altman also stated that AMD's leadership in high-performance chips will help OpenAI "bring the benefits of advanced AI to everyone faster."

Reshaping the AI Chip Competitive Landscape

For a long time, AMD has been regarded as a "distant second" in the AI accelerator market, far behind NVIDIA. The completion of this agreement marks AMD's acquisition of cutting-edge flagship customers in the generative AI wave, greatly validating the strength of its next-generation Instinct product roadmap.

According to data, AMD's AI GPU revenue is expected to reach $6.55 billion this year, and its collaboration with OpenAI will serve as a powerful springboard for revenue growth.

For OpenAI, bringing AMD on board as a core strategic partner is a key step in reducing its over-reliance on NVIDIA technology. Just less than two weeks ago, OpenAI reached a $100 billion equity and supply agreement with NVIDIA to build a 10-gigawatt computing infrastructure. Now, the 6-gigawatt agreement with AMD further ensures the supply security and resilience of its vast computing landscape.

This collaboration is one of the largest GPU deployment agreements in the AI industry to date, providing strong endorsement for AMD's AI chip technology and highlighting OpenAI's urgent strategy to diversify its supply chain and reduce dependence on a single supplier as it builds its trillion-dollar computing infrastructure.

The Emergence and Concerns of the AI "Closed-loop Economy"

This collaboration has also drawn more attention to an emerging AI "closed-loop economy" model.

In this model, capital, equity, and computing power circulate among a few leading companies: OpenAI anchors huge computing power demands, companies like NVIDIA and AMD provide chips, while companies like Oracle help build data centers.

Reports indicate that OpenAI is also in talks with Broadcom to develop custom chips for its next-generation models.

This highly concentrated industrial ecosystem has raised concerns among analysts. They believe that if any link in this tightly intertwined system begins to weaken, it could face real pressure.

Moreover, this has also dragged AMD into an increasingly intense industry debate: how the massive spending by the tech industry on AI infrastructure will be recouped, and whether the current pace of expansion is sustainable