SAN FRANCISCO - US chipmaker AMD and OpenAI announced Monday a 6-gigawatt agreement to power OpenAI's next-generation artificial intelligence infrastructure across multiple generations of AMD Instinct GPUs.

The first 1 gigawatt deployment of GPUs is set to begin in the second half of 2026, according to a press release.

Under the agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology, starting with the AMD Instinct MI450 series and rack-scale AI solutions and extending to future generations, it said.

AMD has issued OpenAI a warrant for 160 million shares of AMD common stock as part of the agreement, structured to vest as specific milestones are achieved, said the release.

"This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world's most ambitious AI buildout and advancing the entire AI ecosystem," said Lisa Su, chair and CEO of AMD.

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Sam Altman, co-founder and CEO of OpenAI, said that "AMD's leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster."

AMD's shares surged 23.71 percent on the news, lifting other semiconductor names, including Applied Materials and Micron.