AMD's stock soars on $100B deal with OpenAI
AMD's stock jumped 37% in pre-market trading on Monday, thanks to a big new deal with OpenAI.
The agreement will see OpenAI deploying 6 gigawatts of AMD Graphics Processing Units (GPUs) over several years, and gives OpenAI the option to claim up to a 10% stake in AMD if certain goals are met.
AMD expects to hit $100B in sales
This move could push AMD's AI GPU revenue to $6.55 billion this year, with even bigger growth expected from 2027.
Execs say the deal could help AMD's total sales top $100 billion.
The first batch of GPUs is set for delivery in late 2026, right as those stake options start kicking in.
NVIDIA's stake in OpenAI could be diluted
NVIDIA announced plans to invest up to $100 billion in OpenAI to build massive AI data centers (at least 10 GW capacity).
After news of the AMD-OpenAI tie-up broke, NVIDIA shares slipped about 1.5%.
AMD and OpenAI CEOs called the partnership a big step for scaling up AI computing power.