Key Takeaways Advanced Micro Devices shares rose Tuesday morning after soaring yesterday to a 19-month high on news that the chip designer and ChatGPT maker OpenAI have inked a multi-year supply deal.

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,

The deal is a huge shot in the arm for AMD, which has been playing second fiddle to Nvidia in the GPU game for the last several years. While Nvidia's stock is up over 1,300% in the last three years as it became the largest publicly traded company in the world, AMD is up a comparatively soft 200% in the same period.

OpenAI partners with semiconductor giant AMD to utilize next-generation graphics processing units for powering AI advancements.

The five-year agreement will challenge Nvidia’s market dominance and gives OpenAI 10% of AMD if it hits milestones for chip deployment.

OpenAI has signed a major deal with AMD in an effort to continue its expansion of AI infrastructure. The billion-dollar, multi-year agreement will have AMD being responsible for deploying 6 GW of its Instinct GPUs, with the first gigawatt coming from AMD Instinct MI450 series GPUs in the second half of 2026.

Under the deal, OpenAI will deploy 6 gigawatts of AMD GPUs based on a multi-year, multi-generation agreement. An initial 1 gigawatt OpenAI deployment of AMD Instinct MI450 Series GPUs is expected to begin in the second half of 2026, according to a statement.