AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
1. AMD's multi-year deal with OpenAI may generate tens of billions in revenue. 2. OpenAI could acquire up to 10% of AMD, strengthening their partnership.
FAQ
Why Very Bullish?
This is a significant contract that positions AMD strongly in the AI market. Historical examples, such as NVIDIA's rise after AI partnerships, support a likely positive price movement for AMD.
How important is it?
The deal's potential for substantial revenue growth and equity stake for OpenAI underlines AMD's strategic importance in the AI sector.
Why Long Term?
The sustained revenue from this deal enhances AMD's long-term growth prospects, similar to how other tech firms benefited from strategic AI investments.