The partnership could also see OpenAI take a roughly 10% stake in AMD, which employs about 3,700 people in Austin.

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

OpenAI signed a deal in May to build out a one-gigawatt data center complex in the United Arab Emirates, a deal that was brokered by the Trump administration. Oracle, Nvidia, Softbank, Cisco and G42, a royals-backed Emirati AI company, are set to back the project.

The S&P 500 and the Nasdaq closed at record highs Monday after ChatGPT-maker OpenAI and Advanced Micro Devices reached a mega-deal that ignited a rally.

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 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.

Yahoo Finance's John Hyland tracks today's top moving stocks and biggest market stories in this Market Minute, including OpenAI's (OPAI.PVT) latest deal announced with Advanced Micro Devices (AMD), Fifth Third Bancorp's (FITB) $10.

AMD unveiled its next-generation Instinct chips at a launch event in July, when CEO Lisa Su took the stage with OpenAI CEO Sam Altman to announce that the AI giant would use the new chips.