Advanced Micro Devices (AMD) has secured a landmark multi-year partnership with OpenAI, under which the AI giant will purchase and deploy up to six gigawatts of AMD’s latest AI chips, the Instinct MI450 series, over several years starting in the second half of 2026. The deal is valued at tens of billions of dollars annually and could cumulatively exceed $100 billion over four years, signaling a transformative moment for AMD and the AI hardware sector. A distinctive feature of this agreement is that OpenAI will finance its chip purchases not through direct cash payments but via AMD stock warrants, granting the AI company the option to acquire up to 160 million AMD shares—around 10% ownership—if certain performance and stock price milestones are met[1][2][3][4][5][7].
This strategic collaboration marks a significant shift in ho...
This strategic collaboration marks a significant shift in how AI companies secure the massive computing power needed to train and run advanced models. OpenAI's move to diversify its chip suppliers beyond dominant player Nvidia reflects a growing confidence in AMD’s technology and market position. The first phase of the deployment will involve about one gigawatt of compute capacity using AMD’s next-generation GPUs, scheduled for late 2026. The full agreement envisions a rollout of hundreds of thousands of these processors, powering OpenAI’s expanding AI infrastructure[1][3][4][5].
The financial structure of the deal is particularly notewort...
The financial structure of the deal is particularly noteworthy. Instead of conventional cash payments, AMD has issued OpenAI stock warrants that vest in tranches linked to AMD’s stock price performance and OpenAI’s successful deployment milestones. For example, the last tranche of shares will only vest if AMD’s market capitalization reaches approximately $1 trillion, which would value OpenAI’s potential stake at about $100 billion. The stock price surged significantly following the announcement, from around $165 to $214 per share, reflecting strong investor confidence[2][4].
AMD CEO Lisa Su expressed enthusiasm for the partnership, em...
AMD CEO Lisa Su expressed enthusiasm for the partnership, emphasizing its potential to enable “the world’s most ambitious AI buildout” while advancing the broader AI ecosystem. Industry analysts view this deal as transformative, not just for AMD but for the competitive dynamics of the semiconductor industry, as it positions AMD as a formidable rival to Nvidia in supplying AI infrastructure chips[4][7].
This collaboration also fits into a broader pattern of OpenA...
This collaboration also fits into a broader pattern of OpenAI rapidly expanding its supply chain, having recently signed major AI infrastructure deals with Nvidia, Oracle, Samsung, and SK Hynix, and reportedly partnering with Broadcom to develop custom AI chips. The scale of OpenAI’s investments underscores the immense demand for specialized computing power in the race to develop next-generation artificial intelligence[4][5].
In summary, AMD’s innovative stock-based financing deal with...
In summary, AMD’s innovative stock-based financing deal with OpenAI is poised to generate unprecedented revenue for the chipmaker and marks a strategic turning point in AI hardware supply. It highlights the increasingly complex financial and technological partnerships underpinning the future of AI development[1][2][3][4][5][7].
🔄 Updated: 10/8/2025, 4:10:54 PM
AMD shares surged more than 34% to $226.71—their highest in over a year—adding about $80 billion to the company’s market value after announcing a landmark multi-year AI chip supply deal with OpenAI that could bring in tens of billions in annual revenue and gives OpenAI the option to acquire up to 10% of AMD, contingent on deployment and stock milestones[5][6]. Under the agreement, OpenAI will deploy hundreds of thousands of AMD’s next-generation Instinct MI450 GPUs—equivalent to six gigawatts of computing power—with the first one-gigawatt facility slated to go live in the second half of 2026[1][2]. “We view this deal as certainly transformative, no
🔄 Updated: 10/8/2025, 4:20:58 PM
Breaking: Wall Street analysts report that AMD plans to leverage its stock to secure financing for OpenAI’s multi-billion dollar chip supply deal, valued at approximately $10 billion over five years. JPMorgan’s recent note highlights AMD’s move could dilute shares by up to 8% but is seen as a strategic investment to dominate the AI hardware market, with CEO Lisa Su emphasizing, “This partnership cements AMD’s role as a key enabler of next-generation AI innovation.”
🔄 Updated: 10/8/2025, 4:31:00 PM
**Breaking news update: Oct 8, 2025, 4:30 pm UTC**
Wall Street analysts reveal OpenAI’s $6 billion-plus AMD chip deal will be financed not by cash, but by AMD stock warrants—up to 160 million shares—that vest as AMD’s market value hits key milestones, potentially giving OpenAI a $100 billion stake if AMD reaches a $1 trillion valuation and all tranches are fully vested[4]. While regulatory agencies have not yet issued a formal statement, Bloomberg Intelligence’s Mandeep Singh noted on-air that “this structure is highly unusual and could draw scrutiny from the SEC, especially given the scale and the cross-ownership implications”; as of now, no antitrust or securities filings
🔄 Updated: 10/8/2025, 4:40:55 PM
In a significant development, Wall Street analysts are speculating that AMD's stock could be used to finance a multi-billion dollar chip deal with OpenAI. This strategic move is reportedly aimed at bolstering OpenAI's AI computing capabilities, with AMD's advanced chip technology being a key component. Analysts estimate the deal could be valued in the tens of billions, highlighting AMD's potential role in empowering OpenAI's AI infrastructure advancements.
🔄 Updated: 10/8/2025, 4:51:04 PM
Wall Street analysts highlight AMD's multi-year AI chip deal with OpenAI as a game-changer, projecting it could generate tens of billions in annual revenue and add over $100 billion in cumulative value over four years. The agreement includes AMD supplying up to six gigawatts of computing power via its new Instinct MI450 chips starting in late 2026, and grants OpenAI the option to purchase up to 160 million AMD shares—roughly 10% ownership—contingent on performance milestones[1][2][3]. Following the announcement, AMD shares surged over 34%, adding approximately $80 billion to its market capitalization, marking the largest one-day gain since 2016[5][6].
🔄 Updated: 10/8/2025, 5:01:09 PM
In a significant development, Wall Street analysts are highlighting how AMD's surging stock will finance the multi-billion dollar chip deal with OpenAI. On October 6, 2025, AMD's stock experienced its largest one-day gain in over nine years, surging by more than 34% and adding approximately $80 billion to its market capitalization[1][4]. This substantial increase in market value is seen as pivotal for funding AMD's ambitious AI infrastructure expansion, as the company positions itself as a major competitor in the AI chip market, alongside industry leader Nvidia[2][5].
🔄 Updated: 10/8/2025, 5:11:32 PM
AMD’s stock surged over 34% on October 6, 2025, marking its largest one-day gain in more than nine years and adding roughly $80 billion to its market capitalization following the announcement of a multi-year AI chip deal with OpenAI[1][2]. Market analysts hailed the partnership, which involves OpenAI deploying up to 6 gigawatts of AMD's Instinct GPUs, as transformative, significantly boosting investor confidence in AMD’s AI strategy and intensifying competition in the AI chip sector[2][5]. Despite broader economic uncertainties, this deal propelled AMD to record stock highs and sparked a positive ripple effect across the AI technology market[4][5].
🔄 Updated: 10/8/2025, 5:21:34 PM
In the wake of AMD's multi-billion dollar chip deal with OpenAI, Wall Street analysts note that the agreement uniquely leverages AMD's stock to finance OpenAI's purchases, potentially generating billions in revenue for AMD. This innovative strategy has sparked significant public interest, with AMD shares surging as much as 28% following the announcement, reflecting a strong consumer and investor reaction to the deal's potential to boost AMD's standing in AI technology[2][4]. Consumers and tech enthusiasts are closely watching the implications of this deal, which could redefine how AI infrastructure costs are managed in the industry.
🔄 Updated: 10/8/2025, 5:31:30 PM
Wall Street analysts highlight that AMD’s multi-year chip supply deal with OpenAI, involving the deployment of GPUs equivalent to six gigawatts starting in 2026, significantly intensifies the competition against Nvidia in AI infrastructure. The agreement, which could generate tens of billions in annual revenue and includes OpenAI potentially acquiring up to a 10% stake in AMD, has triggered a 24-30% surge in AMD’s stock, valuing the company at over $330 billion and signaling a major shift in market dynamics[2][3][5]. This move diversifies OpenAI's GPU sources and pressures Nvidia and Broadcom shares downward, marking a substantial reshaping of the AI chip industry landscape[3].
🔄 Updated: 10/8/2025, 5:41:45 PM
Wall Street analysts highlight that there has been no official government or regulatory response reported so far to AMD’s multi-billion dollar chip deal with OpenAI, which involves deploying 6 gigawatts of AMD GPUs starting in 2026. The partnership, valued at tens of billions in revenue and involving stock warrants that could give OpenAI up to 10% ownership in AMD, is underpinned by milestones including shipments and stock price targets but has yet to draw scrutiny or comment from regulatory bodies[4][6]. AMD CEO Lisa Su noted that the deployment timeline depends partly on power availability, reflecting infrastructure challenges rather than regulatory concerns[3].
🔄 Updated: 10/8/2025, 5:51:45 PM
AMD’s stock surged as much as 8% in premarket trading Monday after Wall Street analysts published reports estimating that the company’s $45 billion market cap expansion over the past year could directly finance its newly announced 6-gigawatt GPU supply deal with OpenAI, valued by analysts at approximately $8–12 billion over the multi-year agreement[1]. Bernstein analyst Stacy Rasgon told clients, “AMD’s equity run-up has effectively pre-funded this partnership—investors are clearly betting that the OpenAI deal will be transformative for AMD’s data center business, starting with the first 1-gigawatt deployment of MI450 GPUs in late 2026”[1].
🔄 Updated: 10/8/2025, 6:01:44 PM
AMD's stock surged over 34% on October 6, 2025, following its multi-year AI chip deal with OpenAI, adding approximately $80 billion to its market capitalization—the largest one-day gain in more than nine years[1][2]. Analysts hailed the deal as transformative, with projections of tens of billions in annual revenue and a significant boost to investor confidence, positioning AMD as a major challenger in the AI chip market traditionally dominated by Nvidia[1][3]. Market enthusiasm extended beyond AMD, creating a "halo effect" that lifted related AI tech stocks amid broader economic uncertainties[5].
🔄 Updated: 10/8/2025, 6:11:32 PM
Wall Street analysts describe AMD’s multi-year AI chip deal with OpenAI as **transformative for AMD and the broader industry**, expecting it to generate **tens of billions in annual revenue** and contribute over **$100 billion over four years** when combined with other customers. AMD executive vice president Forrest Norrod called the agreement a major vote of confidence in AMD’s AI technology, while AMD strategy chief Mat Hein highlighted OpenAI’s pioneering role in driving ecosystem growth. The deal also includes a warrant allowing OpenAI to acquire up to **10% ownership** in AMD, contingent on delivery milestones and stock performance, underscoring strong industry belief in AMD’s challenge to Nvidia’s dominance[1][2][3][6].
🔄 Updated: 10/8/2025, 6:21:47 PM
Wall Street analysts highlight that AMD’s multi-year AI chip deal with OpenAI, valued in the tens of billions annually, signals a transformative shift in the global AI hardware market, fueling intensified competition with Nvidia and prompting a ripple effect across the semiconductor ecosystem[1][2][3]. OpenAI’s plan to deploy hundreds of thousands of AMD's GPUs, requiring up to six gigawatts of power—equivalent to the energy needs of five million U.S. households—underscores the immense scale and international significance of this partnership as it aims to meet skyrocketing AI infrastructure demands starting mid-2026[1][4]. Globally, this deal is seen as a major vote of confidence in AMD’s AI technology, with industry leaders noting i
🔄 Updated: 10/8/2025, 6:31:55 PM
There is currently no specific regulatory or government response to AMD's deal with OpenAI using stock to finance the multi-billion chip purchase. However, Wall Street analysts note that the deal depends on AMD's stock performance, with potential milestones tied to stock price targets, which could impact future regulatory scrutiny of stock transactions. As of now, there are no reported government interventions or comments on the arrangement, but analysts are closely monitoring the situation for any potential implications on market practices.