AMD is forecasting a revenue windfall of more than $100 billion over the next four years, a projection driven by its newly announced multibillion-dollar partnership with AI leader OpenAI. The chipmaker believes the landmark deal will have a powerful ripple effect, cementing its technology as a go-to choice for the booming AI industry.
The agreement itself is a massive undertaking, with OpenAI committing to purchase hundreds of thousands of AMD’s AI-focused GPUs. This hardware will be deployed starting in the second half of 2026 to create a six-gigawatt computing infrastructure, providing the raw power needed for developing sophisticated AI models. The deal is expected to directly net AMD tens of billions in annual revenue.
Mat Hein, AMD’s strategy chief, described OpenAI as a “pioneer in the industry that has a lot of influence over the broader ecosystem.” He explained that as OpenAI successfully deploys AMD’s technology at an unprecedented scale, other companies racing to build their own AI capabilities will follow suit, driving the anticipated $100 billion revenue surge.
The market immediately bought into this optimistic vision. AMD’s shares skyrocketed by more than 30% on the news, increasing the company’s market capitalization by approximately $80 billion. The deal was hailed as “transformative,” not just for AMD’s bottom line but for its competitive standing against rivals like Nvidia.
The partnership also includes a strategic equity component. OpenAI has been granted a warrant to purchase a 10% stake in AMD, creating a powerful incentive for mutual success. This deepens the relationship beyond a typical supplier contract and aligns the companies for long-term collaboration on the future of AI technology.