American Multinational Corporation and Technology Company, Advanced Micro Devices (AMD), has signed a several years to supply artificial intelligence chips to OpenAI, a movement that could generate tens of billions of dollars in annual income for the company.
The agreement also gives the Chatgpt creator the option to acquire up to approximately 10% of AMD’s shares.
The Association strengthens OpenAi’s position while offering a great impulse to AMD, one of Nvidia’s greatest competitors in the AI ​​chips market.
“We see that this agreement is certainly a transformative, not only for AMD, but for the dynamics of the industry,” said AMD executive vice president, Forrest Norrod.
After the announcement, AMD shares increased more than 23% in trade prior to the market, establishing them for their highest inauguration since March 2024.
The agreement includes the supply of hundreds of thousands of AMD GPU, equivalent to six gigawatts, with a deployment that begins in the second half of 2026.
Operai plans to build a data installation of a Gigadrition driven by the next AMD MI450 chips next year, with AMD starting to register income once production begins.
The company’s executive project could generate more than $ 100 billion in new income for four years from Operai and other customers influenced by the agreement.
“Other people will accompany him because this is really the pioneer, a pioneer in the industry that has a lot of influence on the broader ecosystem,” said AMD strategy manager Mat Hein.
The OpenAi CEO, Sam Altman, said the agreement will help build the infrastructure necessary for the growth of the company. Analysts expect AMD to publish about $ 32.78 billion in revenue this year, according to LSE data.
As part of the agreement, AMD issued an order that allows Openai to buy up to 160 million shares for 1 penny each, with milestones linked to chips deliveries and AMD shares performance. The first milestone will be achieved after the initial shipping of Mi450 in 2026, with others linked to the price objectives that increase to $ 600 per share.
AMD currently has 1.62 billion in circulation and a market value of $ 267.23 billion, with closed shares at $ 164.67 on Friday, according to LSE data.
(Yahoofinance)
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