"Under the five-year deal, OpenAI will purchase up to 6 gigawatts of AMD's most advanced AI processors, a level of computing capacity equivalent to the peak electricity demand of London. The partnership is designed to provide OpenAI with the infrastructure it needs to scale its technology as competition in the AI sector intensifies. Shares in AMD surged 27 per cent to $209.39 in New York trading after the deal was announced, adding tens of billions of dollars to the chipmaker's market value."
"As part of the arrangement, OpenAI has the right to acquire a 10 per cent stake in AMD, worth around $34 billion at current market prices. The company can buy up to 160 million AMD shares for one cent each, with the first tranche due to vest after the shipment of AMD's upcoming MI450 chips in the second half of 2026."
OpenAI agreed a five-year, multibillion-dollar partnership with AMD to purchase up to 6 gigawatts of AMD's most advanced AI processors, matching London's peak electricity demand. The deal includes a right for OpenAI to acquire up to 10% of AMD by buying up to 160 million shares for one cent each, with the first tranche vesting after shipment of MI450 chips in the second half of 2026. AMD's stock jumped 27% on the announcement. AMD said the arrangement will drive revenue and earnings growth and help OpenAI accelerate its AI build-out. OpenAI reported $4.3 billion revenue and $2.5 billion cash burn in H1 2025 and also has a strategic partnership with Nvidia.
Read at Business Matters
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