AMD stock skyrockets 35% as OpenAI looks to take stake in AI chipmaker
CNBC1 day
AMD Stock Surges 25% on Massive OpenAI GPU Deal
The Spin
Nvidia's stranglehold is crumbling. AMD's monumental 6 GW OpenAI partnership — potentially worth tens of billions — shatters the illusion of Nvidia's invincibility. OpenAI's strategic diversification, granting AMD a core compute partnership alongside massive warrant stakes, signals a seismic market realignment. The AI industry's insatiable demand has opened the floodgates, and AMD's high-performance Instinct processors are poised to demolish Nvidia's monopolistic reign decisively.
Despite AMD's OpenAI partnership, Nvidia's supremacy remains unassailable. The AI giant commands a staggering 92% market share, generates profits exceeding AMD's by orders of magnitude, and continues revolutionizing inference performance with each GPU generation. Even losing marginal market share proves inconsequential — the exploding GPU market ensures Nvidia's absolute dominance persists. AMD's advances merely validate Nvidia's pioneering vision while trailing its technological leadership.
Metaculus Prediction
There is a 5% chance AMD will have its AI accelerators fabricated in China before 2033, according to the Metaculus prediction community.
Go Deeper
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© 2025 Improve the News Foundation.
All rights reserved.
Version 6.15.2