Advanced Micro Devices Inc. shares surged in premarket trading after the chipmaker signed a deal with OpenAI for AI infrastructure that could generate tens of billions of dollars in new revenue.
The two signed a definitive agreement for OpenAI to deploy 6 gigawatts of AMD graphics processing units over multiple years, the companies said Monday in a statement. AMD has given OpenAI a warrant for as many as 160 million shares which will vest as milestones are achieved. Those targets require AMD’s stock price to continue to increase in value and future exercise points include a tranche tied to a share price of $600. AMD shares closed Friday at $164.67. (Source: Bloomberg)
