AMD Strikes a Groundbreaking $95B Deal with OpenAI, Leading to a 43% Surge in Stock
Advanced Micro Devices (AMD) has entered into a landmark partnership with OpenAI, a deal that could potentially result in the ChatGPT maker acquiring up to 10% of the chipmaker through a unique stock warrant arrangement.
The agreement stipulates that OpenAI will deploy 6 gigawatts of AMD’s AI chips over multiple years, including the upcoming MI450 series scheduled for 2026. This news led to a 43% surge in AMD’s stock this week, boosting its market value by over $63 billion.
The collaboration positions AMD as a formidable rival to Nvidia in the AI chip market. “This partnership is transformative for both companies,” said AMD CEO Lisa Su.
As part of the deal, OpenAI will receive warrants for up to 160 million AMD shares. The vesting of these shares is tied to deployment milestones and stock price targets. This arrangement enables OpenAI to potentially fund its chip purchases through the appreciation of AMD’s own stock, a move that analysts describe as a “circular” but strategically sound deal structure.
Source: www.cnbc.com