AMD Shares Skyrocket by 24% Following Monumental OpenAI Partnership
Advanced Micro Devices (AMD) unveiled a landmark partnership with OpenAI on Monday, a move that propelled the chipmaker’s stock by a staggering 24% in a single trading session. The agreement entails OpenAI acquiring 6 gigawatts of AMD’s Instinct GPUs over a span of several years, with the initial 1 gigawatt deployment slated for the latter half of 2026.
As a key component of the deal, AMD issued OpenAI warrants for a maximum of 160 million shares of AMD common stock. This could potentially grant the AI firm up to a 10% stake in the chipmaker. The warrants will vest based on the achievement of deployment milestones and specific AMD share price targets. AMD CEO Lisa Su characterized the partnership as being worth “tens of billions of dollars” in revenue commencing in 2027.
This agreement positions AMD as a formidable contender to Nvidia’s supremacy in the AI chip market. “This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout,” Su declared. The deal adds a whopping $63.4 billion to AMD’s market valuation, elevating it to $330.6 billion.
Source: CNBC