AMD has agreed to a multi-billion-dollar partnership to supply its artificial intelligence chips to OpenAI.

The multi-year deal, announced Monday, will see OpenAI deploy 6 gigawatts of AMD GPUs, with the first 1 gigawatt deployment set to begin in the second half of 2026.

“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” Sam Altman, cofounder and CEO of OpenAI, said in the Monday announcement.

The move provides a significant boost to AMD against Nvidia, which is the dominant player in the AI chip market.

It also gives OpenAI the opportunity to take a roughly 10% stake in AMD, with shares vesting as the companies hit deployment targets and AMD hits share price targets.

AMD’s share price is up nearly 27% in premarket trading Monday.

AMD did not immediately respond to a request for comment from Business Insider. OpenAI directed Business Insider to a statement on its press page.

This is a developing story. Please check back for updates.