AMD Pays a High Price for Blockbuster OpenAI Deal

Shares of Advanced Micro Devices (NASDAQ: AMD) rocketed higher on Monday after the chip company announced a megadeal with OpenAI. The agreement will see OpenAI deploy AI data centers totaling 6 gigawatts of power consumption using AMD's Instinct AI GPUs. The first gigawatt deployment is scheduled to start in the second half of 2026 using AMD's next-generation Instinct MI450 GPUs.Image source: Getty Images.The deal is more complicated than OpenAI simply buying AMD's AI GPUs. As part of the arrangement, AMD issued OpenAI a warrant for up to 160 million shares of AMD stock. The warrant will vest in tranches based on specific milestones, and the full amount can be exercised once all 6 gigawatts of capacity has been deployed, once AMD has reached certain share-price targets, and once OpenAI has reached certain technical and commercial milestones. The warrant allows OpenAI to purchase shares of AMD at $0.01 per share.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool