In case you missed this today in the pre-market action.
Under the terms of the deal, OpenAI will buy the latest version of the company's high performance graphics chips, the Instinct MI450, which is expected to debut next year.
The agreement calls for supplying 6 gigawatts of computing power for OpenAI’s “next generation” AI infrastructure, with the first batch of chips worth 1 gigawatt to be deployed in the second half of 2026.
AMD also issued OpenAI with a warrant allowing the AI company to buy up to 160 million shares of AMD’s common stock. That amounts to about 10% of company based on AMD's 1.6 billion outstanding shares. The warrant will vest based on two milestones tied to the amount of computing power deployed, as well as unspecified “share-price targets."
Shares of AMD spiked 25% before the opening bell Monday. Shares of Nvidia, which have repeatedly set new record-highs this year, fell slightly.
“This partnership is a major step in building the compute capacity needed to realize AI’s full potential,” OpenAI CEO Sam Altman, said in a news release. “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster.”
The deal is a boost for Santa Clara, Calif.-based AMD, which has been left behind by rival Nvidia. But it also hints at OpenAI's desire to diversify its supply chain away from Nvidia's dominance. The AI boom has fuelled demand for Nvidia's graphics processing chips, sending its shares soaring and making it the world's most valuable company.
Last month, OpenAI and Nvidia announced a $100 billion partnership that will add at least 10 gigawatts of data center computing power.
AMD flying – OpenAI and chipmaker AMD sign chip supply partnership for AI infrastructure
byu/OkAnt7573 inStockMarket
Posted by OkAnt7573
6 Comments
Plain stupid
Boombaclat moment for those who sell amd lol
It’s may or may not be a bubble , but people still cashing in with all these semiconductor and AI related stocks
Yeah I mean I might sell, that price is just way too high makes no sense
insanity continues 🙂
Macquarie Core Equity Fund had a pretty good timing in writing this about AMD in their Q2 letter : “*The company currently maintains a small market share for GPUs used for AI applications though by 2027, we believe the company will have product on par with the market leader, NVIDIA. Hyperscale customers with deep programming expertise may increasingly decide to dual-source high-end chips leading to much larger revenue and profit gains in coming years for AMD than investors currently expect.”*
Huh, they think they will have chips good enough for data centers? I would like hope this means we’d get better gaming gpus from amd next year, but I’m guessing they will all be sucked into the ai vortex?
I wonder what kind of stocks are safe havens from the ai bubble crash. Resources? Gold? Though I thought the rise there was more to do with stability fears for USD? Real estate? I wonder just how far the contagion would spread. Who the tech companies have loans or bank with, etc