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2025-10-06T13:07:13z
- AMD stocks surged on Monday in major AI trading news.
- Semiconductor Company has announced a multi-year agreement to provide chips to Openai.
- The deal makes AMD a better place to compete with Nvidia and recently signed a deal with Openai.
Movement: AMD stocks surged 35% on Monday to $223.50 over the opening bell, and rebounded after a 3% decline on Friday. Semiconductor producers rose 36% in the previous year until the end of Friday.
why: On Sunday, AMD announced that it had signed a multi-year agreement with OpenAI to provide AI chips to ChatGpt manufacturers, particularly advanced graphics processing units.
Chipmaker will deploy AMD's instinct GPU to help Openai's rapidly growing infrastructure, with the first deployment scheduled for the second quarter of 2026. In total, all AMD chip deployments will expand 6 gigawatts of power across multiple generations of AI infrastructure.
“Under this decisive agreement, Openai will work with AMD to work together as a core strategic computing partner to drive the massive deployment of AMD technology, starting with the AMD Instinct MI450 series and rack-scale AI solutions, and expanding to future generations,” AMD said.
The transaction also offers Openai the option to acquire a 10% stake in AMD. The chipmaker has issued a warrant of 160 million shares of AMD common stock.
What that means: This news follows a deal between Openai and Nvidia. In this news, the Chip giant will provide Openai with hardware to build new data facilities as part of its $100 billion investment.
The blockbuster deal is considered to be AMD's bearish development, and has lifted top competitor Nvidia in partnership with the face of the recent AI boom.
However, AMD's own OpenAI transaction has made chipmakers a better competitive position, and their technology has gained great support from top AI developers.
“This partnership is a major step in building the computing power needed to fully realize the potential of AI,” said Sam Altman, CEO of Openai. “AMD's leadership on high-performance chips will help accelerate progress and make the benefits of advanced AI faster for everyone.”
