October 7, 2025

finance  
amd, openai and nvidia Updates

Advanced Micro Devices (AMD) has secured a significant multi-year agreement to supply artificial intelligence chips to OpenAI, the creator of ChatGPT. This landmark deal is projected to generate tens of billions of dollars in annual revenue for AMD, with projections suggesting over $100 billion in new revenue from this and other customers over the next four years. The partnership also includes an option for OpenAI to acquire up to approximately 10% of AMD's stock, a move that caused AMD shares to surge over 34% following the announcement. The agreement mandates the deployment of hundreds of thousands of AMD's AI chips, equivalent to six gigawatts, beginning in the second half of 2026. OpenAI plans to construct a one-gigawatt facility utilizing AMD's forthcoming MI450 series chips. This collaboration positions AMD as a major competitor to Nvidia in the AI chip sector and diversifies OpenAI's chip suppliers. Meanwhile, the broader AI infrastructure sector is also seeing growth, with data center REITs like Digital Realty Trust and utilities such as Dominion Energy benefiting from increased demand and power requirements. In other AI news, Meta Platforms is facing scrutiny over its AI investments and subscription model, while startups like Heidi have raised substantial funding, with $98 million in its latest round. The third quarter of 2025 saw over $6 billion invested in AI and quantum computing firms, with Cerebras Systems leading the pack with a $1.1 billion raise.

Key Takeaways

  • AMD has signed a multi-year deal to supply AI chips to OpenAI, projected to generate tens of billions in annual revenue.
  • OpenAI has the option to acquire up to approximately 10% of AMD's stock as part of the agreement.
  • The deal involves deploying hundreds of thousands of AMD's AI chips, equivalent to six gigawatts, starting in the second half of 2026.
  • OpenAI will build a one-gigawatt facility using AMD's upcoming MI450 series chips.
  • AMD anticipates over $100 billion in new revenue over four years from this and other customers.
  • The AMD-OpenAI partnership aims to diversify OpenAI's chip suppliers beyond Nvidia and scale its AI infrastructure.
  • Companies supporting AI infrastructure, such as data center REITs and utilities, are also benefiting from AI growth.
  • Heidi, an AI startup, raised $98 million in its latest funding round in 2025.
  • The third quarter of 2025 saw over $6 billion invested in AI and quantum computing companies, with Cerebras Systems raising $1.1 billion.
  • Nvidia and Broadcom are identified as leading cash generators in the AI market.

AMD and OpenAI Forge Major AI Chip Deal with Stock Option

AMD has signed a multi-year agreement to supply artificial intelligence chips to OpenAI, the company behind ChatGPT. This deal is expected to generate tens of billions of dollars in annual revenue for AMD. Additionally, OpenAI has the option to acquire up to roughly 10% of AMD's stock. The agreement includes the deployment of hundreds of thousands of AMD's AI chips starting in the second half of 2026. OpenAI will also build a one-gigawatt facility using AMD's forthcoming MI450 series chips.

AMD to Supply OpenAI with AI Chips, Offers Stake Option

Advanced Micro Devices (AMD) announced a significant multi-year deal to provide artificial intelligence chips to OpenAI. This agreement is projected to bring in tens of billions of dollars in annual revenue and includes an option for OpenAI to purchase up to approximately 10% of AMD's shares. The deal covers the deployment of hundreds of thousands of AMD's AI chips, equivalent to six gigawatts, beginning in the latter half of 2026. OpenAI plans to construct a one-gigawatt facility utilizing AMD's upcoming MI450 series chips.

AMD Secures Major OpenAI AI Chip Deal with Stock Incentive

AMD has secured a significant multi-year deal to supply artificial intelligence chips to OpenAI, the creator of ChatGPT. The agreement is valued at tens of billions of dollars annually and includes an option for OpenAI to buy up to 10% of AMD's stock. Hundreds of thousands of AMD's AI graphics processing units will be deployed starting in the second half of 2026. OpenAI will also build a 1-gigawatt facility using AMD's MI450 series chips, with AMD expecting over $100 billion in new revenue from this and other customers over four years.

AMD Shares Surge on Landmark OpenAI AI Chip Supply Deal

Advanced Micro Devices (AMD) announced a multi-year deal to supply artificial intelligence chips to OpenAI, which could generate tens of billions in annual revenue. The agreement also gives OpenAI the option to buy up to 10% of AMD's stock, causing AMD shares to surge over 34%. The deal involves deploying hundreds of thousands of AMD's AI chips, equivalent to six gigawatts, starting in the second half of 2026. OpenAI will construct a one-gigawatt facility based on AMD's MI450 series chips, with AMD anticipating over $100 billion in new revenue over four years.

AMD to Supply OpenAI with AI Chips, Offers Stake Option

Chipmaker AMD will supply artificial intelligence chips to OpenAI in a multi-year deal expected to bring in tens of billions of dollars annually. The agreement also grants OpenAI the option to purchase up to roughly 10% of AMD's company stock. AMD shares surged over 34% on the announcement, marking their biggest one-day gain in nine years. The deal includes the deployment of hundreds of thousands of AMD's AI chips, equivalent to six gigawatts, starting in the second half of 2026. AMD anticipates over $100 billion in new revenue from this and other customers over the next four years.

AMD and OpenAI Ink Multi-Billion Dollar AI Chip Deal

AMD has signed a major multi-year agreement with OpenAI to supply artificial intelligence chips, a deal projected to generate tens of billions of dollars in annual revenue. The partnership also gives OpenAI the option to acquire up to 10% of AMD's shares. The agreement involves deploying hundreds of thousands of AMD's AI graphics processing units, equivalent to six gigawatts, starting in the second half of 2026. OpenAI will build a one-gigawatt facility using AMD's upcoming MI450 series chips, and AMD expects over $100 billion in new revenue over four years from this and other clients.

OpenAI Signs Multi-Billion Dollar Chip Deal with AMD

OpenAI and AMD have announced a multibillion-dollar chip deal that includes an option for OpenAI to acquire a 10% stake in AMD. This agreement will see AMD supply hundreds of thousands of its AI chips, equivalent to six gigawatts, over several years starting in the second half of 2026. OpenAI plans to build a one-gigawatt facility using AMD's forthcoming MI450 series chips. AMD expects the deal to generate tens of billions in annual revenue and over $100 billion in new revenue over four years from OpenAI and other customers.

AMD to Supply OpenAI with AI Chips, Offers Stake Option

AMD will supply artificial intelligence chips to OpenAI in a multi-year deal expected to bring in tens of billions of dollars annually, and will give OpenAI the option to buy up to roughly 10% of the chipmaker's stock. Shares of AMD jumped over 23% in premarket trading following the announcement. The agreement covers the deployment of hundreds of thousands of AMD's AI chips, equivalent to six gigawatts, starting in the second half of 2026. AMD expects to receive more than $100 billion in new revenue over four years from OpenAI and other customers.

OpenAI Secures Multi-Billion Dollar AI Chip Deal with AMD

OpenAI has agreed to purchase artificial intelligence chips worth tens of billions of dollars over multiple years from Advanced Micro Devices Inc. (AMD). This partnership also gives OpenAI the option to acquire up to a 10% stake in AMD. The deal involves deploying up to 6 gigawatts of AMD Instinct GPUs, starting with a 1-gigawatt rollout in 2026. This move diversifies OpenAI's chip suppliers beyond Nvidia and aims to scale its AI infrastructure for developing advanced models.

AMD Stock Soars on Multi-Billion Dollar OpenAI AI Chip Deal

Advanced Micro Devices (AMD) stock surged 7% in premarket trading after announcing a significant deal to supply its artificial intelligence chips to OpenAI. The agreement, valued at over $1 billion, will provide OpenAI with AMD's GPUs to power its AI models. This partnership is expected to boost AMD's revenue and market share in the competitive AI chip sector. OpenAI CEO Sam Altman stated that AMD's GPUs are crucial for scaling their AI infrastructure.

AMD Partners with OpenAI for AI Chips, Securing Billions in Revenue

Advanced Micro Devices (AMD) has signed a multi-year agreement to supply AI chips to OpenAI, the company behind ChatGPT. This deal is expected to generate tens of billions of dollars in annual revenue for AMD and includes an option for OpenAI to acquire up to approximately 10% of AMD's shares. The agreement involves delivering AMD's Instinct GPUs, starting with a 1-gigawatt deployment in 2026 and scaling up to 6 gigawatts over several years. This partnership aims to support OpenAI's ambitions in advancing artificial intelligence.

AI Infrastructure: Data Centers and Utilities Benefit from AI Growth

While Nvidia leads in AI chips, companies supporting AI infrastructure are also poised to benefit. Data center REITs like Digital Realty Trust, which owns global data center facilities, are seeing increased demand. Utilities are also crucial as AI requires significant power. Dominion Energy, with its monopoly in a key data center market in Virginia, is highlighted as an example. Investors can also consider ETFs like the WisdomTree New Economy Real Estate Fund for diversified exposure to AI infrastructure.

AI Infrastructure: Data Centers and Utilities Benefit from AI Growth

Beyond chipmakers like Nvidia, businesses supporting AI infrastructure are set to profit. Data center real estate investment trusts (REITs) such as Digital Realty Trust are benefiting from the need for physical space for AI. Utilities are also crucial as AI requires substantial electricity. Dominion Energy is noted for its strong position in a major data center market. For diversified investment, the WisdomTree New Economy Real Estate Fund and the Utilities Select Sector SPDR ETF offer exposure to these growing sectors.

AI Doctor Assistant Heidi Raises $98 Million, Valuation Soars

Heidi, a six-year-old Melbourne-based startup, has successfully closed a $US65 million ($98 million) funding round, significantly increasing its valuation. The company uses artificial intelligence to transcribe consultations between doctors and patients. This is Heidi's second funding round in 2025, and it plans to launch an additional $5 million 'community round' for its clinician users. Heidi is noted as the fastest-growing company in the portfolio of Blackbird Ventures.

Startup Funding Q3 2025: AI and Quantum Computing Dominate

The third quarter of 2025 saw significant funding for AI and quantum computing companies, with over $6 billion raised by 75 firms. AI chip maker Cerebras Systems led with a $1.1 billion raise, while other companies focused on data center solutions and networking technologies for generative AI. Quantum computing also saw major investments, including a $1 billion round for a photonic quantum system maker. Other funded areas included embedded agents, AI for analog design, and advanced cooling systems.

AMD Deal with OpenAI Sparks Debate on AI Investment Strategies

The recent deal between OpenAI and AMD, which includes an option for OpenAI to take a 10% stake in AMD, has reignited enthusiasm for AI investments. However, some analysts question the structure, drawing parallels to vendor financing during the Dotcom Bubble. The agreement involves OpenAI deploying AMD Instinct GPUs and receiving a warrant for AMD shares. While AMD shares surged, concerns exist about the circular nature of such deals, especially compared to Nvidia's all-cash investment in OpenAI.

AMD and OpenAI Alliance Reshapes Artificial Intelligence Landscape

Advanced Micro Devices (AMD) is set to become a major competitor to Nvidia following a landmark multi-year partnership with OpenAI. The deal involves supplying AI accelerators and is expected to drive significant revenue and earnings growth for AMD. Analysts view this alliance as a transformative event for AMD, positioning it as an indirect investment vehicle for the booming AI market. Despite potential risks like Nvidia's dominance, the scale of AI opportunities and this partnership signal a new era for AMD.

Meta Platforms Faces Scrutiny Over AI Investments and Subscription Model

Discussions surrounding Meta Platforms (META) focus on its AI infrastructure investments and the launch of an ad-free subscription model for Facebook and Instagram. While some see potential for revenue growth, concerns exist about competitive pressures from other AI firms. Meta's stock has experienced volatility, leading to debates about whether its substantial AI expenditures will yield long-term benefits. The company's stock trading activity by members of Congress and insider sales are also being closely monitored.

Nvidia and Broadcom Emerge as Top AI Cash Generators

Nvidia and Broadcom are identified as leading companies benefiting from the booming AI market, generating substantial cash flow. Nvidia produced $43 billion in cash from operations in the first half of its fiscal year, returning most of it to shareholders through dividends and buybacks. Broadcom generated over $7 billion in free cash flow in its most recent quarter and has also been returning cash to investors. Both companies are expected to continue strong growth due to demand for their AI semiconductors and infrastructure.

Sources

AMD OpenAI AI Chips Artificial Intelligence ChatGPT Stock Options Partnership Revenue MI450 Series Data Centers AI Infrastructure Utilities Nvidia Heidi Cerebras Systems Quantum Computing Meta Platforms Broadcom GPUs Investment