Record for AMD: Shares Soar 38% After OpenAI Deal

AMD’s shares jumped to $226.71, a 38% surge marking the company’s biggest single-day gain in years. The rise followed a newly signed agreement with OpenAI for the supply of graphics processors. Meanwhile, NVIDIA’s stock dropped by 2.3%.

More About the Contract

According to Bloomberg, OpenAI received 10% of AMD’s total shares (around 160 million) for a symbolic price. These shares will vest once certain performance milestones are achieved, including an increase in AMD’s stock price to $600.

Investing in AI Infrastructure

OpenAI continues to invest heavily in artificial intelligence infrastructure, though the sources of funding for such large-scale projects remain unclear. CEO Sam Altman previously stated his intention to spend “trillions of dollars” on building a global AI network.

NVIDIA is also investing $100 billion in new data centers for OpenAI.

Analysts note that AI companies’ profits still lag behind their massive expenditures, raising concerns about a potential “AI bubble” forming in the market.