By Max A. Cherney

SAN FRANCISCO (Reuters) -AMD said on Monday it will supply artificial intelligence chips to OpenAI in a multi-year deal that would bring in tens of billions of dollars in annual revenue and give the ChatGPT creator the option to buy up to roughly 10% of the chipmaker.

The deal offers OpenAI an opportunity to take a stake in one of Nvidia’s most formidable rivals and is a powerful endorsement of Advanced Micro Devices’ (AMD’s) AI chips and software.

“We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry,” AMD executive vice president Forrest Norrod told Reuters on Sunday.

Shares of AMD jumped more than 23% in premarket trading, putting them on track to open at their highest level since March 2024, if gains hold.

The agre

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