AMD's Game-Changing Deal With OpenAI Boosts Revenue, Shares Surge
AMD has inked a transformative deal with OpenAI, projected to generate tens of billions in annual revenue. The agreement has sent AMD's shares soaring by over 34%, adding $80 billion to its market value. Forrest Norrod, AMD's executive vice president, views the deal as a game-changer for the industry.
The multi-year agreement sees AMD supplying AI chips to OpenAI, a rival to Nvidia. OpenAI has the option to acquire up to 10% of AMD's shares as part of the deal, further deepening their ties. Analysts interpret this move as a vote of confidence in AMD's chips and software.
AMD's projected 2023 revenue stands at $32.78 billion, a significant figure but dwarfed by Nvidia's projected $206.26 billion. However, the deal with OpenAI is expected to bring in tens of billions annually and over $100 billion in new revenue over four years, marking a substantial boost for AMD.
The AMD-OpenAI deal reflects the high demand for computing power in the AI sector. It's a strategic win for AMD, potentially transforming its revenue landscape and solidifying its position in the market.
