Advanced Micro Devices (NASDAQ: AMD) shares experienced a significant premarket surge of 33.59%, reaching $219.99, following a pivotal agreement with OpenAI to supply up to 6 gigawatts of AMD Instinct GPU power for AI infrastructure. The partnership begins with a 1-gigawatt rollout of AMD Instinct MI450 GPUs set for the latter half of 2026, with plans for future expansions across AMD’s data center chips. As a key compute partner, OpenAI will utilize the MI450 series and rack-scale AI solutions, building on existing collaborations involving AMD’s MI300X and MI350X series. Additionally, AMD granted OpenAI a warrant for up to 160 million shares, contingent on deployment milestones. This partnership is projected to significantly enhance AMD’s revenue, with CFO Jean Hu stating it could generate “tens of billions” and boost earnings per share. The move follows Nvidia’s $100 billion commitment to OpenAI, intensifying competition in the AI sector.
Source link
