AMD shares have entered a record high following its large-scale AI hardware deal with OpenAI. The company’s shares have gained 43 percent on a weekly basis. This surge puts AMD on track for its best weekly performance since April 2016.
AMD shares break records
This large-scale deal was announced at the beginning of the week. Under the agreement, OpenAI could potentially own 10 percent of AMD. The partnership involves OpenAI purchasing billions of dollars’ worth of AI hardware from AMD and meeting the partnership’s stated objectives.
Following the agreement, AMD shares surged 24 percent on Monday. On Wednesday, they gained 11 percent. These developments have driven AMD’s market capitalization to $380 billion. If all the agreement’s provisions are fulfilled, AMD’s value could reportedly reach $1 trillion.
This partnership with OpenAI has significantly boosted investor confidence in AMD, which has historically had a close relationship with Nvidia. The agreement is based on AMD’s Instinct MI450 series AI GPU solution, which will be released next year. This strengthens expectations that AMD could become a serious competitor to Nvidia in the AI chip market.
AMD CEO Lisa Su described the agreement as a “win-win” for both parties. Su said the company’s AI chips are capable of being deployed in very large data centers, demonstrating their suitability for the scaled deployments required by OpenAI and major cloud providers.
