OpenAI and Advanced Micro Devices have reached a deal that could see Sam Altman‘s company take a 10% stake in the chipmaker.

AMD stock skyrocketed more than 30% on Monday following the news.

OpenAI will deploy 6 gigawatts of AMD’s Instinct graphics processing units over multiple years and across multiple generations of hardware, the companies said Monday. It will kick off with an initial 1-gigawatt rollout of chips in the second half of 2026.

“We have to do this,” OpenAI President Greg Brockman told CNBC’s “Squawk on the Street.” “This is so core to our mission if we really want to be able to scale to reach all of humanity, this is what we have to do.”

Brockman added that the company is already unable to launch many features in ChatGPT and other products that could generate revenue because of the lack of compute power.

As part of the tie-up, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, with vesting milestones tied to both deployment volume and AMD’s share price.

The first tranche vests with the first full gigawatt deployment, with additional tranches unlocking as OpenAI scales to 6 gigawatts and meets key technical and commercial milestones required for large-scale rollout.

If OpenAI exercises the full warrant, it could acquire approximately 10% ownership in AMD, based on the current number of shares outstanding.

The ChatGPT maker said the deal was worth billions, but declined to disclose a specific dollar amount.

The deal positions AMD as a core strategic partner to OpenAI, marking one of the largest GPU deployment agreements in the artificial intelligence industry to date.

AMD CEO Lisa Su told CNBC’s “Squawk on the Street” that AI is on a 10-year growth path, and “at the end of the day, you need the foundational compute to do that.”

“You need partnerships like this that really bring the ecosystem together to ensure that, you know, we can really get the best technologies, you know, out there,” she said. “So we’re super excited about the opportunities here.”

The partnership could help ease industrywide pressure on supply chains and reduce OpenAI’s reliance on a single vendor.

OpenAI unveiled a landmark $100 billion equity-and-supply agreement with Nvidia nearly two weeks ago, cementing the chip giant’s role in powering the next generation of OpenAI models. That arrangement combined capital investment with long-term hardware supply — though in Nvidia’s case, it was the chipmaker taking an ownership stake in OpenAI. 

Shares of Nvidia fell 1% on Monday following news of the OpenAI-AMD deal.

That deal accounts for a dedicated 10-gigawatt portion of OpenAI’s broader 23-gigawatt infrastructure road map. At an estimated $50 billion in construction costs per gigawatt — together with the AMD deal — OpenAI has committed roughly $1 trillion in new buildout spending in just the past two weeks.

OpenAI is also in talks with Broadcom to build custom chips for its next generation of models.

The arrangement between OpenAI and AMD adds a new layer to the increasingly circular nature of AI’s corporate economy, where capital, equity and compute are traded among the same handful of companies building and powering the technology. 

Nvidia is supplying the capital to buy its chips. Oracle is helping build the sites. AMD and Broadcom are stepping in as suppliers. OpenAI is anchoring the demand.

It’s a tightly wound circular economy, and one that analysts fear could face real strain if any link in the chain starts to weaken.

For AMD, the partnership is both a commercial milestone and a validation of its next-generation Instinct road map.

After years of trailing Nvidia in the AI accelerator market, AMD now has a flagship customer at the forefront of the generative AI boom.

Su said it creates “a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem.”

It also reinforces OpenAI’s broader infrastructure ambitions.

Through its Stargate project, CEO Altman’s startup is rapidly transforming into one of the most aggressive infrastructure builders in the AI sector. Its first site in Abilene, Texas, is already operational and running Nvidia chips, with construction continuing to expand capacity.

Upcoming builds in New Mexico, Ohio and the Midwest are expected to feature a mix of suppliers, including AMD.

WATCH: OpenAI’s Sarah Friar says ‘full ecosystem’ needs to come together to address compute crunch

Firefly Aerospace stock climbed 9% Monday, after the space company said it’s buying defense technology contractor SciTec for $855 million as it looks to strengthen its national security offering.

The deal, announced Sunday, is slated to close at the end of the year and includes $300 million cash and $555 million in Firefly shares.

“These capabilities significantly enhance our ability to deliver integrated, software-defined solutions for critical national security imperatives, particularly Golden Dome,” said CEO Jason Kim in a release.

The company plans to integrate SciTec’s software into its tools. Capabilities such as missile warning, tracking and defense and autonomous command control will also support Firefly’s launch and space services, the company said.

Last week, Firefly shares sank over 20% in one trading session after the company said a rocket exploded during a ground test at its Texas facility. That came shortly after the Federal Aviation Administration cleared Firefly in an investigation over another rocket failure.

Firefly shares debuted on the Nasdaq this summer to strong investor demand. The public listing marked the third significant space tech debut of 2025, and shares surged more than 30% on its first day of trading. The stock has since pulled back.

Firefly carries a growing list of key government and defense partners as it builds its position in the national security space. That includes a recent $177 million contract with NASA and a $50 million investment from Northrop Grumman.

Once the acquisition closes, Princeton, New Jersey-based SciTec will operate as a subsidiary run by current CEO Jim Lisowski.

WATCH: Firefly Aerospace CEO Jason Kim on IPO debut, pathway to profitability

Artificial intelligence chipmaker Cerebras Systems said on Friday that it’s withdrawing plans for an IPO, days after announcing that it raised over $1 billion in a fundraising round.

In a filing with the SEC, Cerebras said it does not intend to conduct a proposed offering “at this time,” but didn’t provide a reason. A spokesperson told CNBC on Friday that the company still hopes to go public as soon as possible.

Cerebras filed for an IPO just over a year ago, as it was ramping up to take on Nvidia in an effort to create processors for running generative AI models. The filing revealed a heavy reliance on a single customer in the United Arab Emirates, Microsoft-backed G42, which is also a Cerebras investor.

In its prospectus, Cerebras said it had given voluntary notice to the Committee on Foreign Investment in the United States about selling shares to G42. In March, the company announced that the committee had provided clearance.

Since its initial filing to go public on the Nasdaq, Cerebras has shifted its focus away from selling systems and more toward providing a cloud service for accepting incoming queries to models that use its chips underneath.

The announced withdrawal comes three days into a U.S. government shutdown that’s left agencies like the SEC operating with a small staff. In a plan for a shutdown published in August, the SEC said its electronic system EDGAR “is operated pursuant to a contract and thus will remain fully functional as long as funding for the contractor remains available through permitted means.”

On Tuesday, Cerebras said it had raised $1.1 billion at a valuation of $8.1 billion in a private funding round. At the time, CEO Andrew Feldman said that the company still wanted to go public, rather than continue to raise venture capital.

“I don’t think this is an indication of a preference for one or the other,” he told CNBC in an interview. “I think we have tremendous opportunities in front of us, and I think it’s good practice, when you have enormous opportunities, not to let them fall by the wayside for lack of capital.”

Feldman thought the original prospectus from last year was out of date, especially considering developments in AI, the spokesperson said on Friday.

Well heeled technology companies have been quickly signing up for additional infrastructure to handle demand. On Tuesday CoreWeave, which rents out Nvidia chips through a cloud service, said it had signed a $14.2 billion agreement with Meta. ChatGPT operator OpenAI said last week that it had committed to spending $300 billion on cloud services from Oracle.

The government shutdown did not factor into Cerebras’ decision, the spokesperson said.

WATCH: Interview with Cerebras CEO Andrew Feldman