Shares of AMD rose 32% at the open following a power agreement with OpenAI.
"OpenAI today announced a 6 gigawatt agreement to power OpenAI’s next-generation AI infrastructure across multiple generations of AMD Instinct GPUs," according to the release.
OpenAI received a warrant for up to 160 million AMD shares based on power deployments and other milestones.
Under this definitive agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology starting with the AMD Instinct MI450 series and rack-scale AI solutions, and extending to future generations. By sharing technical expertise to optimize their product roadmaps, AMD and OpenAI are deepening their multi-generational hardware and software collaboration that began with the MI300X and continued with the MI350X series. This partnership creates a true win-win for both companies.
It's certainly a win for AMD shareholders.
AMD shares
For other chip companies, this is yet-another sign that the US is all-in on computer chip production and dominating that industry. Intel shares rose 3.7% today and it's the only foundry company in the United States. It's a $177 billion company compared to $4.45 trillion for Nvidia and $350 billion for AMD.
