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AMD stock and the OpenAI deal: what it is and what it did

The terms of AMD’s 6-gigawatt chip deal with OpenAI, how the 160-million-share warrant works, what it did to AMD stock, and what to watch as the first chips ship, with AMD live.

LemonTrades·Guides
Two computer chips joined by a line, next to a price line that jumps.

TL;DR

  • In October 2025, OpenAI agreed to deploy up to 6 gigawatts of AMD’s AI chips over several years, starting with 1 gigawatt of MI450 chips in the second half of 2026.
  • AMD gave OpenAI a warrant for up to 160 million AMD shares at a penny each, about 10% of the company, vesting as deployments grow and AMD’s stock hits targets up to $600.
  • AMD stock jumped 24% the day it was announced; the live price and its change since are below.
  • LemonTrades tells you what moved AMD, and why, the minute it moves, and warns you before its earnings.

The OpenAI deal made AMD a real rival to Nvidia in AI chips, and paid OpenAI in AMD stock to make it happen. Here’s how it works.

AMDValue
One AMD sharelive$– –
Since the day before the dealclosed $164.67, October 3, 2025–
The warrant’s final price target$600 a share– from here
Nvidia (NVDA)for comparison$– –

Live, updated every minute.

The deal

  • Announced: October 6, 2025.
  • Size: up to 6 gigawatts of AMD Instinct GPUs across several chip generations. A gigawatt is roughly the power of a large power plant, and enough chips to fill several huge data centers.
  • First step: 1 gigawatt of MI450 chips, starting in the second half of 2026.
  • Scale: AMD said the deal could bring in tens of billions of dollars of revenue.

How the warrant works

AMD gave OpenAI the right to buy up to 160 million AMD shares for $0.01 each. The shares vest in tranches: the first when the first gigawatt is deployed, more as OpenAI’s purchases grow toward 6 gigawatts, and each also tied to AMD’s share price, with the last requiring $600. OpenAI also has to meet technical and commercial milestones. In effect, AMD pays OpenAI in stock for becoming a giant customer, and OpenAI gains most if AMD’s stock soars.

What it did to AMD stock

AMD closed at $164.67 on Friday, October 3, 2025, and at $203.71 on Monday, October 6, up 24%, its best day in years. It kept climbing through 2026, with a 52-week high above $650. AMD now moves with the AI trade alongside Nvidia: see Nvidia’s chart and why AI chip stocks plunge.

What to watch

  • The first gigawatt: whether MI450 deployments start on time in the second half of 2026; that’s when the first warrant tranche vests.
  • OpenAI’s finances: it has committed to chips from Nvidia, AMD, Broadcom and others; its ability to pay matters to all of them.
  • Dilution: if the warrant fully vests, AMD’s share count grows by about 10%.
  • AMD’s results: data center revenue each quarter. See the earnings calendar.

Sources

Education, not financial advice. Prices from daily data. See our disclaimer.

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