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OpenAI Looks to Take 10% Stake in AMD Through AI Chip-Supply Deal Worth Billions
- In a joint statement Monday, AMD and OpenAI announced a 6 gigawatt GPU deal and a warrant for up to 10% stake, with Sam Altman saying, 'This partnership is a major step in building the compute capacity needed to realize AI's full potential.'
- To diversify its supply chain, OpenAI named AMD a core strategic compute partner shortly after its $100 billion agreement with Nvidia.
- The first 1 gigawatt rollout of AMD Instinct MI450 GPUs is scheduled for the second half of 2026, while AMD issued OpenAI a warrant for up to 160 million shares vesting by deployment and share-price milestones including $600 per share.
- Investors reacted as AMD stock surged 33.59% premarket Monday, while Jean Hu said the deal could generate "tens of billions of dollars" and be "highly accretive" to earnings.
- Taken together, the deals push OpenAI toward nearly $1 trillion in new infrastructure spending, complementing the Stargate project with five new data centers and 7 gigawatts planned capacity.
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The U.S. stock went up this Monday despite the fact that the federal government's closure came in a new week.The dominant news that injected strong optimism into the market was a meg agreement between AMD and OpenAI, which raised hopes about the expansion of the Artificial Intelligence trade.The Nasdaq Composite (^IXIC), of great technological weight, led the rise with a 0.5% rise, driven by the rise of almost 35% of AMD. The S&P 500 (^GSPC) ros…
OpenAI plans massive purchase of AMD chips in return for stake ...
·Washington, United States
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Coverage Details
Total News Sources75
Leaning Left15Leaning Right6Center19Last UpdatedBias Distribution47% Center
Bias Distribution
- 47% of the sources are Center
47% Center
L 38%
C 47%
15%
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