OpenAI order AMD processors for billion dollars

AMD shares soared 38% to $226.71, their biggest intraday gain in nine years. The deal was driven by a massive contract with OpenAI to supply 6 GW of GPUs and a share buyback mechanism.

Under the deal, AMD has granted OpenAI warrants for approximately 160 million shares at a nominal price of one penny each. This represents about 10% of the company’s outstanding shares. The warrants will vest after certain milestones are reached, such as an increase in AMD’s market value or a share price of $600.

CEO Lisa Su said the deal structure encourages OpenAI to actively adopt AMD technologies, as the success of the partnership benefits both parties.

NVIDIA shares fell 2.3% on the news. However, the company is also developing cooperation with OpenAI: in September, NVIDIA announced an investment of up to $100 billion to create an artificial intelligence infrastructure with a capacity of 10 GW – this can be compared to the peak energy consumption of the entire New York City.

However, the question remains how OpenAI is going to finance such large-scale projects. Earlier, Sam Altman said that the company intends to spend trillions on the development of AI infrastructure and is working on creating a new financial instrument, but there are no details yet. Against this background, analysts are increasingly warning about a possible “bubble” in the field of artificial intelligence.