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Key Points
Advanced Micro Devices (NASDAQ: AMD) announced a partnership with OpenAI on Monday, which involves the deployment of 6 gigawatts of AMD GPUs over several years. This deal, expected to generate tens of billions in revenue, includes a 1-gigawatt initial deployment of AMD’s Instinct MI450 Series GPUs set for the second half of 2024.
As a result of the news, AMD shares surged 26.6% at 9:59 a.m. ET, following an initial opening increase of 35%. The agreement also grants OpenAI a warrant for 160 million shares of AMD, potentially valued at around $32 billion.
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