AMD stock surged more than 35% during premarket trading on Monday following the announcement, setting the stage for its highest opening since March 2024. The company, currently valued at about $267 billion with 1.62 billion shares outstanding, closed at $164.67 on Friday.
The contract elevates AMD to a strategic partner in OpenAI’s long-term infrastructure expansion. On the part of AMD, it serves as a significant confirmation of its product roadmap, the Instinct product, which strengthens its competitiveness with NVIDIA in the AI accelerator market. AMD’s leadership described the partnership as a milestone that advances both companies’ ambitions to scale global AI infrastructure.
In the case of OpenAI, the acquisition expands its hardware collaboration and aids its goal of delivering 23 gigawatts of computing strength across various locations. The firm has already entered into a supply contract with NVIDIA worth $ 100 billion. It is currently in talks with Broadcom, which will create tailor-made chips to operate in subsequent model generations.
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