AMD stock is surging after the company announced a deal to provide chips to OpenAI, with the option for the ChatGPT maker to take a 10% stake.

AMD got a big endorsement in the form of a multiyear chip deal with OpenAI, which was also issued a warrant to purchase up to 160 million AMD shares.

OpenAI’s latest move in the race to build massive data centers in the US shows it believes demand for AI will keep surging—even as skeptics warn of a bubble.

The deal calls for OpenAI to establish 6 gigawatts of computing capacity using AMD’s chips over the next several years. Those chips are the most direct competitor to Nvidia’s AI processors that generate more than $146 billion in annual data center revenue now and are expected to run up to $226 billion worth of annual sales in the next 12 months,

In a significant challenge to Nvidia’s dominance, OpenAI announced Monday it would buy 6 gigawatts of computing power from data centers that will run exclusively on AMD chips.

Right now, during Prime Big Deal Days, Amazon is offering this powerhouse processor at an all-time low price of $285 for Prime members only, slashed from its original $549 price.

It’s likely the first of many — analysts at Jefferies upgraded Advanced Micro Devices to a buy, after the chipmaker’s stock surged on a pact with ChatGPT maker OpenAI.