"The total deal value has been estimated at around $90 billion to $100 billion in revenue for AMD. As the deal scales, OpenAI gets warrants to purchase AMD stock at performance thresholds that top out at $600 per share. The math here is fairly straightforward: OpenAI gets ownership of about $100 billion in AMD for buying about $100 billion worth of chips."
"AMD ( Nasdaq: AMD) signed a massive deal with OpenAI that was announced before the market opened on October 6th. Since that date, shares of AMD are up an astounding 42% in under two weeks. That's especially notable since shares of rival NVIDIA ( Nasdaq: NVDA) are down more than 2% during that time as large funds rotate money from the dominant GPU company to AMD."
On October 6th, AMD and OpenAI agreed that OpenAI will purchase 6 gigawatts of GPUs, with the first deliveries comprising one gigawatt in the second half of 2026. The deal value is estimated at roughly $90 billion to $100 billion in revenue for AMD. As the agreement scales, OpenAI receives warrants to buy AMD stock at performance thresholds that top out at $600 per share, effectively exchanging chip purchases for potential equity ownership. AMD shares rose about 42% in under two weeks while rival NVIDIA shares declined as funds rotated. The agreement also creates a catalyst for memory suppliers such as SK Hynix and Micron and has prompted follow-on hyperscaler orders like Oracle's.
Read at 24/7 Wall St.
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