Jim Cramer: OpenAI-AMD deal shows the total addressable market is much bigger than people say

Core Insights - OpenAI has entered into a significant partnership with AMD for data centers that will utilize AMD processors, leading to a notable increase in AMD's stock price [1] - This deal follows a previous large agreement between OpenAI and Nvidia, indicating a competitive landscape in the AI chip market [2][3] - The total addressable market for AI chips is perceived to be larger than previously estimated, suggesting a growing demand for various chip manufacturers [3][4] Company Developments - OpenAI's CEO Sam Altman appears to be pursuing a strategy to secure a wide range of chips to maintain a competitive edge [4] - AMD's CEO Lisa Su and OpenAI's President Greg Brockman are expected to discuss the implications of this partnership in an upcoming interview [12] - There is skepticism regarding OpenAI's financial capacity to fulfill the commitments of the deal, as current financials do not support the scale of chip purchases planned [8][9] Market Dynamics - The partnership between OpenAI and AMD may indicate a shift in the competitive dynamics of the AI chip market, with potential implications for Nvidia and other players [5][10] - The discussion around vendor financing suggests that competitors may support each other financially to capture market share, although this remains a contentious point [5][6] - The overall sentiment in the market is shifting towards optimism about the future of AI technology and its financial viability, despite some lingering doubts [7][11]