OpenAI’s new deal with Advanced Micro Devices (AMD) looks to be a game-changing event for the semiconductor company. Long living in the shadow of its mammoth competitor, Nvidia (NVDA), AMD got a shot in the arm on Monday when the company announced a deal to outfit generations of OpenAI infrastructure with AMD’s graphics processing units (GPUs). The deal calls for OpenAI, the maker of ChatGPT, to purchase 6 gigawatts of GPUs, starting with 1 GW of AMD Instinct MI450 GPUs to begin in the second half of 2026 ...

Advanced Micro Devices | North America October 7, 2025 02:36 AM GMT Key Takeaways What happened: Today AMD and OpenAI announced (here) a 6GW agreement to power OpenAI's next-generation AI infrastructure across multiple generations of AMD Instinct GPUs. The first 1 gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second half of 2026. As part of the agreement, AMD has issued warrants to OpenAI for up to 160mn shares of AMD stock, which vest according to specific milestones, including cert ...

An entrance to the Advanced Micro Devices (AMD) headquarters in 2010 in Sunnyvale, Calif. OpenAI bestowed its blessings and backing on the tech company Monday, inking a deal. (Paul Sakuma / Associated Press) OpenAI bestowed its blessings and backing on another tech company Monday, inking a deal with chipmaker Advanced Micro Devices, instantly making it one of the hot companies investors hope will be at the forefront of the artificial intelligence boom. The shares of AMD soared more than 30% after the com ...

U.S. stocks traded mixed midway through trading, with the Nasdaq Composite gaining more than 150 points on Monday.The Dow traded down 0.16% to 46,684.03 while the NASDAQ rose 0.71% to 22,941.69. The S&P 500 also rose, gaining, 0.40% to 6,742.80.Check This Out: How To Earn $500 A Month From McCormick Stock Ahead Of Q3 EarningsLeading and Lagging SectorsInformation technology shares jumped by 0.9% on Monday.In trading on Monday, real estate stocks fell by 0.8%.Top HeadlineAdvanced Micro Devices (NASDAQ:AMD) s ...

Core Viewpoint - Advanced Micro Devices (AMD) has announced a significant partnership with OpenAI, which includes OpenAI acquiring a 10% stake in AMD and AMD supplying 6 gigawatts of GPUs to OpenAI, leading to a notable increase in AMD's stock price by over 25% in early trading [1][2]. Group 1: Deal Overview - OpenAI will take a 10% stake in AMD, valued at up to 160 million shares, and AMD will provide approximately 6 gigawatts of GPUs to OpenAI [1][3]. - The deal will commence with an initial purchase of 1 gigawatt of AMD Instinct MI450 GPUs, expected to begin in the second half of 2026 [5]. - AMD will issue OpenAI warrants for up to 160 million shares of AMD common stock, which will vest as specific milestones are achieved, starting with the first 1 gigawatt deployment [6]. Group 2: Market Context - AMD has been trailing Nvidia in the GPU market, with Nvidia's stock increasing over 1,300% in the last three years compared to AMD's 200% rise [2]. - Despite Nvidia's dominance, AMD's stock performance has doubled that of Nvidia's in 2025, indicating a potential shift in market dynamics [3]. - The partnership with OpenAI is expected to generate "tens of billions of dollars in revenue for AMD," according to AMD's CFO [7]. Group 3: Industry Trends - The AMD-OpenAI deal is part of a broader trend among major chipmakers racing to scale, with Nvidia also announcing a $100 billion deal with OpenAI and a $5 billion stake in Intel [7]. - OpenAI has also secured a $300 billion deal with Oracle for cloud equipment, highlighting the competitive landscape in the AI and semiconductor industries [7].

U.S. stocks traded mixed this morning, with the Dow Jones index falling more than 100 points on Monday.Following the market opening Monday, the Dow traded down 0.23% to 46,651.42 while the NASDAQ rose 0.37% to 22,865.21. The S&P 500 also rose, gaining, 0.20% to 6,729.08.Check This Out: How To Earn $500 A Month From McCormick Stock Ahead Of Q3 EarningsLeading and Lagging SectorsUtilities shares jumped by 0.7% on Monday.In trading on Monday, real estate stocks fell by 0.6%.Top HeadlineAdvanced Micro Devices ( ...

It was only a few weeks ago that NVIDIA pledged a $100 billion investment in OpenAI. Now, OpenAI has come to another agreement, this time with NVIDIA's competitor, AMD. OpenAI has announced a deal to use AMD's chips to create six gigawatts worth of AI infrastructure. AMD expects to make "tens of billions of dollars" from this agreement. According to OpenAI, AMD will act "as a core strategic compute partner to drive large-scale deployments" of its technology. OpenAI will use AMD's Instinct GPUs, with plans ...

Core Insights - Advanced Micro Devices (AMD) has entered a significant agreement with OpenAI to deploy up to 6 gigawatts of AMD Instinct GPU power for AI infrastructure [1][2] - The initial phase involves a 1-gigawatt rollout of AMD Instinct MI450 GPUs scheduled for the second half of 2026, with plans for further expansions [1][3] - AMD will be designated as a core compute partner for OpenAI, focusing on next-generation hardware and software development [2][3] Financial Implications - AMD issued OpenAI a warrant for up to 160 million shares, with vesting tied to deployment milestones, starting with the initial 1-gigawatt rollout [4] - AMD's CFO indicated that the partnership could generate "tens of billions of dollars in revenue" and significantly enhance AMD's adjusted earnings per share [5] - AMD's stock price surged by 33.59%, reaching $219.99, following the announcement [5][7] Competitive Landscape - This agreement comes in the wake of Nvidia's $100 billion commitment to OpenAI, which includes plans to deploy at least 10 gigawatts of its systems [6] - Nvidia's partnership is seen as a strategic move that could generate $300 billion to $500 billion in long-term revenue, intensifying competition for AMD [6][7] - Analysts note that Nvidia's collaboration strengthens its position in the AI market, increasing competitive pressure on AMD and other peers [6][7]

News Highlights OpenAI to deploy 6 gigawatts of AMD GPUs based on a multi-year, multi-generation agreementInitial 1 gigawatt OpenAI deployment of AMD Instinct™ MI450 Series GPUs starting in 2H 2026 SANTA CLARA, Calif., Oct. 06, 2025 (GLOBE NEWSWIRE) -- AMD (NASDAQ: AMD) and OpenAI today announced a 6 gigawatt agreement to power OpenAI’s next-generation AI infrastructure across multiple generations of AMD Instinct GPUs. The first 1 gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second ...