Mon Oct 06 21:25:43 UTC 2025: Here’s a summarized news article based on the provided text:

**AMD Secures Massive AI Chip Deal with OpenAI, Shares Soar**

**San Francisco, CA** – Advanced Micro Devices (AMD) has struck a multi-year deal with OpenAI, the creator of ChatGPT, to supply artificial intelligence chips in an agreement projected to generate tens of billions of dollars in annual revenue. The deal also grants OpenAI the option to purchase up to 10% of AMD. The news sent AMD’s stock price soaring more than 34% on Monday, adding roughly $80 billion to its market value, marking the company’s largest single-day gain in over nine years.

AMD executives are touting the deal as “transformative” for both the company and the broader AI industry, emphasizing the growing demand for computing power as companies push the boundaries of AI technology. This agreement solidifies AMD as a major player in the AI chip market, directly challenging Nvidia, the current market leader.

While analysts acknowledge that the deal validates AMD’s technology and represents a significant vote of confidence in its AI chips, they believe it’s unlikely to dethrone Nvidia, which is currently selling every AI chip it produces. AMD expects the OpenAI deal, combined with other customer acquisitions, to generate over $100 billion in new revenue over the next four years.

OpenAI’s CEO, Sam Altman, stated that the partnership with AMD will help his company build the necessary AI infrastructure to meet its growing needs. Notably, the agreement differs from OpenAI’s recent deal with Nvidia, where Nvidia will invest $100 billion in OpenAI. The AMD deal gives OpenAI influence over AMD’s strategy as a potential part-owner. OpenAI has a valuation of $500 billion and burned through $2.5 billion in cash, according to media reports.

Read More