US EditionHow AMD’s AI Software Helped It Score The Multi-Billion Dollar OpenAI Deal
OpenAI's multibillion-dollar deal includes purchasing 6 gigawatts of AMD AI chips and an option to acquire 10% of AMD, intensifying competition with Nvidia in the AI chip market.
- Nvidia CEO Jensen Huang told CNBC's Squawk Box on Oct. 8th, 2025 that he was surprised Advanced Micro Devices offered 10% of the company to OpenAI.
- On Monday, OpenAI and AMD agreed to terms that include OpenAI purchasing 6 gigawatts of AMD chips, including the Instinct MI450, and receiving warrants for 160 million AMD shares.
- Investor response was immediate as AMD stock jumped 38% on Monday and the company reached a $380 billion market cap, following Nvidia's up-to-$100 billion collaboration with OpenAI late last month.
- Asked about funding, Huang said OpenAI lacks money now and must raise capital through revenues, equity or debt, while Nvidia is set to invest $2 billion.
- The deal positions Advanced Micro Devices as a stronger rival to Nvidia, challenging its dominance and narrowing the gap for AI compute providers with the Instinct MI450.
31 Articles
31 Articles
OpenAI and chipmaker AMD sign chip supply partnership for AI infrastructure - Electronic Products & Technology
Semiconductor maker AMD will supply its chips to artificial intelligence company OpenAI as part of an agreement to team up on building AI infrastructure, the companies said Monday. OpenAI will also get the option to buy as much as a 10% stake in AMD, according to a joint statement announcing the deal. It’s the latest deal for the ChatGPT maker as it races to beef up its AI computing resources. Under the terms of the deal, OpenAI will buy the lat…
Wall Street Analysts Just Upgraded These Five Stocks
Analysts are doubling down on market leaders, with fresh upgrades for Nvidia, AMD, Walmart, Amazon, and Broadcom. Firms like Cantor Fitzgerald, Piper Sandler, Wolfe Research, BMO, and Goldman Sachs are raising price targets, citing explosive AI growth, retail strength, and tech innovation. Key Points Cantor Fitzgerald just raised its price target on Nvidia by $60 to $300 a share, with an overweight rating. AMD announced a long-term deal to be…
The company specialized in artificial intelligence (IA), OpenAI, and the chip company, Advanced Micro Devices (AMD), announced a multi-million dollar alliance to collaborate in AI data centers that will operate with AMD processors.According to the terms of the agreement, to which the Wall Street Journal had access, the company responsible for products such as ChatGPT and Sora pledged to buy AMD chips worth 6 gigawatts, starting with the MI450 ch…
Nvidia CEO Jensen Huang Says He's 'Surprised' AMD Would Give Away 10% Of The Company In Its Deal With OpenAI: 'It's Clever, I Guess' - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)
On Wednesday, Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang weighed in on Advanced Micro Devices, Inc.'s (NASDAQ:AMD) partnership with OpenAI, calling the move "imaginative" but "surprising." Huang Says AMD's 10% Stake Giveaway To OpenAI Was ‘Surprising' Speaking on CNBC's Squawk Box, Huang was asked about AMD's newly announced deal with OpenAI, which includes a warrant granting the ChatGPT-maker up to 160 million AMD shares — roughly 10% of the c…
Nvidia CEO surprised by AMD's deal giving OpenAI a 10% stake
In an interview on CNBC's Squawk Box, Huang called the arrangement "unique and surprising," given AMD's excitement about its upcoming hardware. "I'm surprised they would give away 10 percent of the company before they even built it," he said. "It's clever, I guess."Read Entire Article
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