10:34 AM EDT, 10/06/2025 (MT Newswires) -- Advanced Micro Devices ( AMD ) took a "major moment" in the artificial intelligence race with a new partnership with OpenAI that makes the chipmaker a core compute provider for the startup's next-generation infrastructure, Wedbush said Monday in a report.

Under the deal, OpenAI will deploy 6 gigawatts of AMD's Instinct AI GPUs, beginning with the MI450 series in the second half of 2026. In return, OpenAI received a warrant for up to 160 million AMD shares, representing about a 10% stake, with vesting tied to deployment milestones and performance targets, the report said.

Wedbush said the partnership marks a "validation moment" for AMD as it joins the ranks of Big Tech players driving the global AI spending cycle, calling it a "huge vote of confidence" from OpenAI and its chief executive officer, Sam Altman.

The firm added that the agreement underscores how rapidly AI infrastructure investment is expanding across enterprises and governments worldwide, saying AMD now "has a major platform to monetize the AI revolution."

Wedbush maintained its outperform rating on AMD's stock with a $190 price target.

AMD shares were up 26.4% recent trading on volume of about 129 million shares, compared with a daily average of roughly 53.5 million.

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