StockNews.AI
AMD
TechCrunch
4 mins

AMD to supply 6GW of compute capacity to OpenAI in chip deal worth tens of billions

1. AMD signed a deal with OpenAI for multi-year chip supplies. 2. The agreement includes providing 6 gigawatts of compute capacity. 3. AMD's MI450 GPU series is expected to outperform Nvidia's offerings. 4. OpenAI can acquire up to 160 million AMD shares based on performance. 5. AMD's stock gained nearly 35% following the announcement.

5m saved
Insight
Article

FAQ

Why Very Bullish?

The significant revenue potential and partnership with OpenAI suggest strong investor confidence. Historical examples, such as partnerships with high-profile tech companies, have previously boosted AMD's stock.

How important is it?

The partnership marks a significant growth opportunity in a booming sector, enhancing AMD's strategic positioning.

Why Long Term?

Revenue will materialize as AMD delivers GPUs starting 2026, suggesting lasting effects. Major advancements in AI infrastructure underpin this long-term potential.

Related Companies

Related News