AMD Shares Soar 26.6% on OpenAI Partnership Deal
AMD has scored a significant deal with OpenAI, sending its shares soaring by 26.6%. The partnership, which remains unofficially announced, promises substantial revenue and earnings growth for AMD. The deal involves OpenAI receiving a warrant for 160 million AMD shares, currently valued at approximately $32 billion if converted. AMD will become OpenAI's core compute partner, with a multi-year agreement for OpenAI to deploy 6 gigawatts of AMD GPUs. This includes an initial deployment of 1 gigawatt of AMD's Instinct MI450 Series GPUs in the second half of next year. AMD expects this partnership to deliver tens of billions in revenue and be highly accretive to non-GAAP earnings per share. OpenAI's CEO, Sam Altman, believes the partnership will accelerate AI progress and benefit everyone. While the exact timing of the partnership announcement remains unclear, AMD and OpenAI's collaboration is set to significantly impact both companies and the AI landscape. AMD shareholders can anticipate substantial returns, and the AI community can look forward to accelerated progress.
