AMD Chair and CEO Lisa Su looks on, on the day of a meeting of the White House Task Force on Artificial Intelligence (AI) Education in the East Room at the White House in Washington, D.C., U.S., September 4, 2025.Oracle Cloud Infrastructure on Tuesday announced that it will deploy 50,000 Advanced Micro Devices graphics processors starting in the second half of 2026.The move is the latest sign that cloud companies are increasingly offering AMD's GPUs as an alternative to Nvidia's market-leading GPUs for arti ...

Core Insights - AMD has secured a deal to supply OpenAI with hundreds of thousands of AI chips, potentially granting OpenAI a 10% stake in AMD [1][5] - AMD's stock surged by 27%, adding nearly $80 billion to its market capitalization following the announcement [1][3] - The agreement includes a significant deployment of six gigawatts of power, sufficient to supply 5 million US households, starting in the second half of 2026 [1][3] Financial Implications - The deal is projected to generate tens of billions of dollars in revenue for AMD while enhancing OpenAI's AI infrastructure capabilities [3][4] - OpenAI's CEO highlighted the partnership as a crucial step in building the necessary compute capacity for AI development [3][4] Strategic Developments - OpenAI plans to establish a one-gigawatt facility utilizing upcoming AMD Instinct MI450 chips, with the project commencing next year [4][6] - AMD has issued OpenAI a warrant for up to 160 million shares of common stock, contingent on achieving specific milestones [4][5] Competitive Landscape - This partnership is one of the largest GPU deployment agreements to date and aims to diversify OpenAI's supplier base, reducing its dependence on Nvidia [6][11] - Nvidia's shares fell by 1.1% following the announcement, indicating potential market shifts due to AMD's new role [6][11] Broader Industry Trends - OpenAI is also negotiating with Broadcom for custom chips for its next-generation GPUs, reflecting a trend towards a more complex supply chain in the AI sector [7][9] - The collaboration aligns with a larger initiative, reminiscent of the $500 billion Stargate project aimed at rapidly developing AI infrastructure in the US [9][10]