OpenAI has inked a multiyear deal with AMD (NASDAQ: AMD) for six gigawatts of GPU capacity to power its next generation of AI models. It\u2019s a mic drop moment. The agreement, unveiled Monday, could deliver tens of billions in revenue over five years, marking AMD\u2019s biggest step yet toward challenging Nvidia\u2019s dominance in AI chips.<\/p>\n
AMD and Nvidia will never become the same. NVIDIA will likely make an x86 processor<\/a> that might be ok, but AMD is crushing in CPUs and might forever after this deal. Intel will eventually be sold off to government mothballs since they can\u2019t make new enterprise or consumer products.<\/p>\n AMD has joined the party pic.twitter.com\/IP9ERC5NNy<\/a><\/p>\n \u2014 Not Jerome Powell (@alifarhat79) October 6, 2025<\/a><\/p>\n\n AMD shares jumped +35% at the open, trading near $204, as investors priced in the deal\u2019s long-term significance. The agreement grants OpenAI<\/a> up to 160 million share warrants, roughly 10% of AMD\u2019s equity, if certain rollout milestones are met, according to filings.<\/p>\n Here\u2019s what to know if you want to know whether to invest or wait:<\/p>\n DISCOVER: 20+ Next Crypto to Explode in 2025<\/a><\/strong><\/p>\n (Source: TradingView<\/a>)<\/p>\n AMD just gave OpenAI 160M shares for pennies so they can sell it off and give it back to AMD in exchange for their GPUs. We\u2019re reaching levels of financial finesse that get you executed in places like China.<\/p>\n The deal instantly rippled across markets. The S&P 500 climbed to 6,740.28 and the Nasdaq Composite surged to 22,941.67, both notching fresh record closes. The Dow Jones Industrial Average slipped slightly, dragged by weakness in consumer data.<\/p>\n (Source: X<\/a>)<\/p>\n This was another chapter in the 2025 AI melt-up. Strategist Ed Yardeni raised his year-end S&P target to 7,000, calling it a \u201cslow-motion melt-up,\u201d while Evercore ISI\u2019s Julian Emanuel maintained a bullish 7,750 projection for 2026.<\/p>\n Nvidia fell just over 1%, but few on Wall Street expect the company\u2019s decade-long dominance to disappear overnight. Instead, analysts see AMD emerging as the critical second supplier for the global AI ecosystem.<\/p>\n DISCOVER:\u00a0<\/span>Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025<\/span><\/a><\/strong><\/p>\n According to FRED data, semiconductor manufacturing output in the United States rose +18.6% year-over-year as of Q3 2025, driven almost entirely by AI chip demand.<\/p>\nWhy Is Wall Street Betting Big on AMD Over Nvidia?<\/h2>\n
OpenAI\u2019s Expanding Chip Empire: What Does It Mean For Crypto?<\/h2>\n