AMD stock jumped 40% after OpenAI announced a strategic partnership to deploy 6 gigawatts of AMD AI chips. Right now, the AMD stock price is sitting at $203.71 as of October 6, 2025, and investors are reacting strongly to this multi-year agreement. The deal also positions AMD as a major competitor to Nvidia stock in the AI hardware market, and it’s reshaping how companies think about AI infrastructure partnerships as well.

OpenAI Partnership Propels AMD Stock Price and AI Chip Momentum

The OpenAI AMD alliance focuses on a clear agreement to drive the next generation AI infrastructure at OpenAI, and it in fact covers several generations of the AMD Instinct GPUs. The initial 1 gigawatt implementation of AMD Instinct MI450 Series GPUs will commence in the second half of 2026, and that is when it will actually start to pick up.

AMD Stock Gains as Deal Reshapes AI Market

Under this agreement, OpenAI will work with AMD as a core strategic compute partner. The partnership extends beyond the MI450 series to future generations as well, and both companies are sharing technical expertise to optimize their product roadmaps along the way.

AMD CEO Lisa Su addressed critics of AI technology following the announcement:

“AI critics are thinking too small”

Her comments reflect confidence in the Advanced Micro Devices stock outlook and the company’s position right now.

Also Read: AMD Stock Surges After Sealing Multi-Billion Dollar OpenAI Deal

Nvidia Stock Faces Competition from AMD AI Chips

The AMD-OpenAI deal comes as OpenAI diversifies its hardware partnerships. Previously, OpenAI and Nvidia announced plans to deploy 10 gigawatts of Nvidia systems. Now, with AMD securing a whopping 6 gigawatts, the competitive landscape has shifted, and it’s affecting both Advanced Micro Devices and Nvidia stock valuations. The battle of the giants commences.

Also, AMD has granted a warrant of up to 160 million shares of Advanced Micro Devices common stock to OpenAI. The warrant is designed to be vested on the accomplishment of milestones during deployment and also when their stock attains some share-price milestones.

Also Read: AMD Gets Stock Downgrade, Why is Wall Street Bearish?

The collaboration reflects that AMD is determined to expand its production of AI chips, and it is setting the business establishment in a place where its stocks will keep growing in the AI infrastructure sector as the requirement of high-caliber computing power grows even more.