AMD Stock Surges 35% as Company Signs Multi-Billion Chip Deal with OpenAI
Summary
AMD stock rockets 35% to $222.24 after signing a massive multi-year chip supply deal with OpenAI worth tens of billions, giving the AI company access to 6 gigawatts of compute capacity and an option to purchase up to 160 million AMD shares.
Key Points
- AMD signs multi-year chip supply deal with OpenAI worth tens of billions, providing 6 gigawatts of compute capacity across multiple generations of Instinct GPUs starting with MI450 series
- OpenAI receives option to purchase up to 160 million AMD shares (10% stake) with tranches vesting as deployments progress and final portion unlocking when AMD stock hits $600 per share
- AMD stock surges nearly 35% to $222.24 following deal announcement as OpenAI continues securing chip partnerships for its AI infrastructure buildout including Stargate data centers