October 8, 2025

finance  
AMD GPUs for OpenAI, Meta Stock Hits Record High

Advanced Micro Devices (AMD) has secured a significant multi-year deal with OpenAI, agreeing to supply up to 6 gigawatts of its Instinct series GPUs for OpenAI's future AI infrastructure. The first deployment of AMD's MI450 GPUs is slated for the second half of 2026. This partnership, which also includes an option for OpenAI to acquire up to approximately 10% of AMD's stock, is projected to generate tens of billions of dollars in annual revenue for AMD and over $100 billion in new income for OpenAI and its clients over four years. This move diversifies OpenAI's hardware suppliers beyond its existing collaboration with NVIDIA. Meanwhile, Meta Platforms' stock has reached record highs, partly fueled by its substantial $14.3 billion investment in Scale AI, underscoring Meta's commitment to advancing its AI technologies. In the broader AI market, Nvidia and Alphabet (Google) are recognized as leading growth stocks due to their foundational roles in AI development and infrastructure. Nvidia continues to dominate with its data center business and CUDA software, while Alphabet invests heavily in its Gemini AI model and data center capacity. However, the AI sector has also seen some stock declines, with companies like Doximity and SoundHound AI experiencing drops amid concerns about AI product demand and profitability, prompting caution among investors. Other companies like Datavault AI and Rezolve AI have seen stock surges driven by updated revenue guidance and new features, respectively, though Rezolve AI also faced a short-seller report questioning its AI business claims. Hon Hai reported record September revenue, boosted by AI servers and iPhone shipments, while IREN's stock rose on securing contracts for NVIDIA Blackwell GPUs.

Key Takeaways

  • AMD has entered a multi-year agreement with OpenAI to supply up to 6 gigawatts of Instinct GPUs, with deployments starting in the second half of 2026.
  • The AMD-OpenAI deal includes an option for OpenAI to acquire up to approximately 10% of AMD's stock.
  • This partnership is expected to generate tens of billions in annual revenue for AMD and over $100 billion for OpenAI and its clients over four years.
  • Meta Platforms' stock reached a new high, partly attributed to its $14.3 billion investment in Scale AI.
  • Nvidia and Alphabet (Google) are identified as leading growth stocks in the AI sector due to their significant investments and market positions.
  • Some AI stocks have recently declined due to concerns about product demand and profitability, leading to investor caution.
  • Datavault AI's stock surged following updated revenue guidance and expansion of its patent portfolio.
  • Rezolve AI's stock increased on financing and new features, but also faced a short-seller report.
  • Hon Hai reported record September revenue, driven by AI servers and iPhone shipments.
  • IREN secured multi-year contracts for NVIDIA Blackwell GPUs, contributing to its stock increase.

AMD and OpenAI Forge Major AI Partnership

Advanced Micro Devices (AMD) has announced a significant strategic partnership with OpenAI, the creator of ChatGPT. AMD will provide 6 gigawatts of its Instinct series GPUs for OpenAI's next-generation AI infrastructure, with the first deployment of MI450 GPUs starting in the second half of 2026. As part of the deal, OpenAI has the option to acquire up to 10% of AMD's common stock. This collaboration aims to accelerate the development of artificial general intelligence and artificial superintelligence.

OpenAI Partners with AMD for AI Infrastructure

OpenAI has entered into a 6-gigawatt agreement with Advanced Micro Devices (AMD) to power its future AI infrastructure. This deal, which includes a potential 10% equity stake for OpenAI in AMD, follows a similar large-scale collaboration with NVIDIA. The first deployment of AMD's Instinct MI450 GPUs is expected in the second half of 2026. Analysts see this as a move by OpenAI to diversify its hardware suppliers and secure necessary computing power for its AI advancements. AMD's stock saw a significant increase following the announcement.

AMD and OpenAI Announce Multi-Billion Dollar AI Chip Deal

Advanced Micro Devices (AMD) has signed a multi-year agreement with OpenAI to supply artificial intelligence chips, projecting tens of billions of dollars in annual revenue. The deal also grants OpenAI the option to acquire up to approximately 10% of AMD's stock. This partnership involves installing hundreds of thousands of AMD AI chips, totaling six gigawatts, starting in the latter half of 2026. AMD anticipates this agreement will generate over $100 billion in new revenue over the next four years from OpenAI and other clients, solidifying its role in building critical AI infrastructure.

AMD Challenges Nvidia with Major OpenAI Chip Deal

OpenAI and AMD have finalized a multi-year agreement where AMD will supply chips for OpenAI's future AI systems, potentially giving OpenAI warrants for up to 10% of AMD's shares. Starting in the second half of 2026, OpenAI plans to use 1 gigawatt of computing power with AMD's Instinct MI450 chips, potentially scaling to 6 gigawatts. This deal diversifies OpenAI's chip supply beyond NVIDIA, which also has a significant agreement with OpenAI. The partnership is expected to bring AMD tens of billions in new yearly revenue and over $100 billion in new income for OpenAI and its clients over four years.

AMD Secures 6 Gigawatt AI Deal with OpenAI

Advanced Micro Devices (AMD) has announced a major multi-year deal with OpenAI to supply up to 6 gigawatts of AMD Instinct GPUs, marking one of the largest GPU deployment agreements in AI history. The partnership, which begins with a 1-gigawatt rollout of AMD's Instinct MI450 GPUs in the second half of 2026, also includes a warrant for OpenAI to acquire up to 160 million shares of AMD stock. This collaboration aims to scale AI globally and accelerate AI progress, with AMD expecting tens of billions of dollars in revenue from the agreement.

AMD's OpenAI Deal: A High Price for AI Growth

Advanced Micro Devices (AMD) announced a significant deal to supply OpenAI with 6 gigawatts of AI GPUs, with the first deployment set for late 2026. As part of the agreement, OpenAI received a warrant to purchase up to 160 million shares of AMD stock at $0.01 per share, potentially giving them a significant ownership stake. While the deal is expected to generate tens of billions in revenue for AMD, it also involves a substantial handover of equity. AMD faces challenges in securing manufacturing capacity and ensuring OpenAI's future demand for this computing power.

Nvidia and Alphabet Lead AI Growth Stocks

Nvidia and Alphabet are highlighted as two leading growth stocks driving the AI revolution. Nvidia, the dominant supplier of AI chips, has seen strong revenue growth fueled by its data center business and its CUDA software ecosystem. Alphabet, through Google, is also a major player in AI, investing heavily in data center capacity and its Gemini AI model. Both companies are seen as well-positioned for long-term returns due to their foundational roles in AI development and deployment.

Nvidia and AMD Poised to Outperform in AI

Nvidia and Advanced Micro Devices (AMD) are identified as two artificial intelligence stocks expected to outperform the S&P 500 by 2030. Nvidia continues to lead with its Blackwell GB200 systems and annual product cadence, supported by its CUDA software. AMD is gaining traction with its EPYC CPUs and Instinct accelerators, securing significant wins in the enterprise market, including a major deal with OpenAI. Both companies trade at premium valuations, justified by their strong fundamentals and growth prospects in the rapidly expanding AI infrastructure market.

AI Stocks Dip Amid Demand and Profitability Concerns

Several artificial intelligence stocks, including Doximity, Bentley Systems, Zeta Global, Guidewire Software, and SoundHound AI, experienced significant declines. This sell-off was triggered by a report raising concerns about the demand for AI products and the profitability of AI companies. A slowdown in cloud computing spending by major tech firms has fueled worries that the AI boom may be cooling off, potentially impacting the expected returns for companies heavily invested in AI. Investors are closely monitoring the sector for further signs of a slowdown.

AI Stocks Decline Amid Profitability Worries

Stocks including Bandwidth, C3.ai, LiveRamp, Rapid7, and Wix saw declines as markets pulled back due to concerns about artificial intelligence demand and profitability. A Morgan Stanley report suggests that while AI demand remains strong, its profitability is uncertain, and current market pricing may be too optimistic. The report advises caution, recommending a selective approach to AI investing and focusing on companies with proven profitability and clear growth paths, as many AI firms are still in early development stages.

Datavault AI Stock Soars on Updated Revenue Guidance

Datavault AI's stock surged by 49.3% after the company updated its revenue outlook for late 2025 and fiscal year 2026. The AI-driven tokenization company announced the incorporation of four independent data exchanges and highlighted its expanded patent portfolio, now exceeding 70 patents. Fully funded after a $150 million seed investment, Datavault AI expects to meet or exceed its second-half 2025 revenue guidance and anticipates surpassing its 2026 revenue target. The company cited rapid industry tokenization, IP licensing, and its partnership with IBM as key revenue drivers.

Rezolve AI Stock Rises on Financing and New Features

Rezolve AI's stock price increased by over 33% in September, driven by several positive developments. The company conducted non-deal roadshows to attract institutional investors and launched an AI-powered visual search feature called 'Visual Search' for a quick camera-to-checkout shopping experience. Additionally, Rezolve AI closed a $200 million private placement investment round to fund international expansion and acquisitions. However, a short-seller report later emerged, alleging that Rezolve AI misrepresented itself as an AI business and questioning its partnerships.

Meta's AI Investments Drive Stock to Record Highs

Meta Platforms' stock price reached a new high, surging by 26% to $738.09, largely due to its significant $14.3 billion investment in Scale AI. This strategic move underscores Meta's commitment to advancing its AI technologies across its family of apps and Reality Labs. Analysts maintain a positive outlook, with a consensus 'strong buy' recommendation and a price target of $722.05. Meta's focus on AI is expected to drive sustained growth and innovation, positioning the company for substantial returns in the coming years.

AppLovin's AI Ad Platform Eyed for Growth

Morgan Stanley has reiterated an 'Overweight' rating on AppLovin Corporation (APP), raising its price target to $750 per share. The firm identifies AppLovin's self-serve tool, AXON Ads Manager, as a key catalyst for future growth, enabling expansion beyond gaming into other markets. This AI-powered platform aims to optimize ad targeting and delivery, enhancing engagement for advertisers. AppLovin is expected to report strong third-quarter earnings, with analysts anticipating revenue growth and increased earnings per share.

AI Stocks Tempus AI, SoundHound AI, BigBear.ai Watched Closely

Tempus AI, SoundHound AI, and BigBear.ai are identified as artificial intelligence stocks to watch. These companies are involved in developing, implementing, or commercializing AI technologies such as machine learning and natural language processing. Investors are advised to conduct thorough due diligence on any AI company, examining financial health, competitive landscape, and future prospects. While AI presents significant opportunities, it also carries risks, and not all companies in the sector are guaranteed to succeed.

Hon Hai Sees Record September Driven by AI Servers and iPhones

Hon Hai Precision Industry Co., Ltd. reported a record revenue of NT$837.068 billion (US$27.55 billion) for September 2025. This strong performance was driven by increased demand for AI servers and shipments of new consumer products, including the iPhone 17 series. The company's robust results reflect the growing market for AI infrastructure and the continued popularity of Apple's flagship smartphone.

IREN Stock Surges on Nvidia Blackwell GPU Contracts

IREN's stock price increased by 10% following the announcement of new multi-year cloud service contracts for deploying Nvidia Blackwell GPUs. The company has secured contracts for 11,000 out of 23,000 GPUs, representing approximately $225 million in AI Cloud Annual Recurring Revenue (ARR), with full operation expected by the end of 2025. IREN is on track to achieve an ARR of over $500 million from its GPU operations by early 2026 and is expanding its data center capacity to accommodate future AI growth.

Sources

AI Partnership AMD OpenAI GPU AI Infrastructure Artificial General Intelligence Artificial Superintelligence Nvidia AI Chips Revenue Stock Equity AI Growth AI Stocks Demand Profitability Cloud Computing AI Products AI Companies AI Investment Data Exchanges IP Licensing IBM AI Platform Visual Search Private Placement Scale AI Meta Platforms Reality Labs AXON Ads Manager Machine Learning Natural Language Processing AI Servers AI Cloud Data Center Capacity