AMD Shares Surge 30% After Multibillion-Dollar Deal With OpenAI

Core Viewpoint - AMD's stock surged following the announcement of a multibillion-dollar deal with OpenAI, positioning AMD to challenge Nvidia's dominance in the AI chip market [1][3] Group 1: Deal Details - OpenAI will acquire and deploy 6 gigawatts of AMD's AI chips, starting with a 1-gigawatt deployment in 2026 [1] - AMD issued OpenAI a warrant for up to 160 million shares, representing an estimated 10% stake in AMD at $0.01 per share, with vesting tied to AMD's stock price milestones [2] - The partnership is expected to generate tens of billions of dollars in revenue for AMD, marking a significant win against Nvidia [3] Group 2: Market Reaction - AMD's shares increased by over 30% to around $215, marking the largest single-day gain since April 2016 [4] - The tech-heavy Nasdaq also saw a rise of 0.3%, with notable increases in shares of Micron (6%), Palantir (4.9%), Intel (4%), and Tesla (3%) [4] - Nvidia's stock experienced a slight decline of 0.2% following the announcement [4] Group 3: Executive Impact - The stock rally added approximately $241 million to CEO Lisa Su's net worth, which is now estimated at $1.4 billion after a 20.5% increase [5] Group 4: Competitive Landscape - Nvidia announced plans to invest $100 billion in OpenAI for deploying 10 gigawatts of its systems, although this deal is not finalized [6] - AMD's boost comes after Nvidia and Intel announced a collaboration on custom chips, which previously posed a threat to AMD's market position [7] - The collaboration between Nvidia and Intel allows for closer integration of Nvidia's GPUs with Intel's x86 CPUs, impacting AMD's competitive edge [8]