AMD Scores Big with OpenAI Deal, Set to Boost Revenue and EPS
AMD has secured a significant deal with OpenAI, set to bring in initial revenues in 2025. The agreement involves OpenAI constructing a one-gigawatt data center using AMD's upcoming MI450 chip series, with the potential for OpenAI to acquire up to 10% of AMD's stock.
AMD's CEO, Lisa Su, anticipates the deal to immediately boost adjusted earnings per share once revenue starts rolling in. The agreement is structured with AMD stock price targets, culminating in full vesting at 600 USD per share.
OpenAI's data center, set to begin construction in 2025, will be powered by AMD's MI450 chip series. AMD has also received a substantial order for hundreds of thousands of GPUs, totalling six gigawatts of computing power, to be delivered from the second half of 2026.
AMD's partnership with OpenAI is expected to bring substantial revenue and boost AMD stock prices, with the potential for OpenAI to acquire a significant stake in the company. The deal involves large-scale GPU orders and data center construction, set to begin in the coming years.
Read also:
- Web3 social arcade extends Pixelverse's tap-to-earn feature beyond Telegram to Base and Farcaster platforms.
- Germany's Customs Uncovers Wage, Immigration Violations in Hotel Industry
- Thriving once more: recovery of the gaming sector's downfall
- U.S. & China Agree to Temporary Trade Truce, Easing Tariffs
