OpenAI and chipmaker Advanced Micro Devices (AMD) have announced a major partnership that could give OpenAI up to a 10% ownership stake in AMD.

The deal involves OpenAI deploying 6 gigawatts of AMD’s Instinct GPUs over several years, beginning with a 1-gigawatt rollout in late 2026.

AMD granted OpenAI a warrant for up to 160 million shares, with vesting tied to deployment milestones and AMD’s share price.

The agreement, worth billions according to OpenAI, makes AMD a key strategic partner and one of the largest GPU suppliers for OpenAI’s expanding AI infrastructure, CNBC has reported.

AMD shares surged more than 25% in premarket trading following the announcement, while Nvidia shares slipped 1% amid news of the deal.