Yahoo Finance·2025-10-08 17:17Core Insights - AMD has formed a multibillion-dollar partnership with OpenAI to supply chips for AI infrastructure and data centers, marking a significant step in AMD's competition with Nvidia [1][2]. Company Developments - AMD has issued warrants for up to 160 million shares as part of the agreement with OpenAI, with vesting milestones linked to deployment volume and AMD's share price [2]. - The first vesting milestone is tied to the deployment of the first full gigawatt, with additional tranches unlocking as OpenAI scales to 6 gigawatts over several years [2]. - The partnership will utilize AMD's upcoming Instinct MI450 series chips, which will be acquired by OpenAI directly or through cloud service partners [2]. Stock Performance - AMD's stock rose by 3.8% on October 7, following a previous rally of 23.7% [3]. - Year-to-date, AMD shares have increased by 75%, indicating strong investor interest and confidence [4]. Market Position - The partnership with OpenAI is viewed as AMD's largest achievement in gaining market share against Nvidia, which is currently seen as the leader in AI chip design [4][5]. - Analysts note that AMD has significantly narrowed the gap with Nvidia, moving from a distant second place to a much closer competitor [5]. Leadership Insights - Lisa Su, AMD's CEO, is recognized for her strategic focus on inference technology, which is expected to yield quick results [7]. - Analysts emphasize the importance of not underestimating her leadership and vision for the company [7].