Topline
AMD shares surged more than 24% in premarket trading on Monday after the chipmaker announced a new multibillion-dollar deal with OpenAI, in a move that looks to challenge AI giant Nvidia, which recently announced plans to acquire a 4% stake in rival Intel.
OpenAI CEO Sam Altman and AMD Chair and CEO Lisa Su at a Senate Commerce Committee hearing on AI.
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Key Facts
The deal will see OpenAI acquire and deploy 6 gigawatt worth of AMD’s AI chips, starting with a 1 gigawatt deployment of AMD’s Instinct MI450 GPU next year.
According to an SEC filing made by AMD, the chipmaker has issued OpenAI a warrant for up to 160 million shares, roughly 10% of the company, at one cent per share, which will be vested when specific share-price targets and commercial milestones are met.
AMD’s share price surged 24% to $204.50 in the premarket early on Monday, following the deal’s announcement.
This is a developing story.