Tag: gigawatts

How AMD Stock Beat the Market (and Nvidia) in 2025
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AMD stock rose 77.3% in 2025, nearly doubling the S&P 500’s return and outpacing Nvidia in the last three months.

OpenAI signed a multi-year deal to buy 6 gigawatts of AMD Instinct AI accelerators, representing a $120 billion revenue opportunity over the next 5 years.

The deal signals that AMD can compete with Nvidia for high-end AI workloads.

10 stocks we like better than Advanced Micro Devices ›

Shares of AMD (NASDAQ: AMD) rose 77.3% in 2025, according to data from S&P Global Market Intelligence. In the same period, the S&P 500 (SNPINDEX: ^GSPC) market index gained 16.4% and AMD rival Nvidia (NASDAQ: NVDA) jumped 38.9% higher.

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AMD’s price chart stayed close to Nvidia’s (and far above the broader market’s) through the first 9 months of last year, indicating continued investor interest in the artificial intelligence (AI) boom that started in November of 2022. But AMD took a solid year-to-date lead in October as a key AI player committed to buying a lot of AMD’s Instinct chips over the next few years.

On Oct. 6, ChatGPT developer OpenAI unveiled a multi-year contract that will put 6 gigawatts of AMD Instinct AI accelerators in OpenAI’s data centers over the next five years. The deal could also make OpenAI a major owner of AMD stock, as it includes stock warrants for up to 160 million AMD shares that will vest (convert into common shares) as AMD delivers its gigawatts of number-crunching hardware. That would be approximately 10% of AMD’s stock.

The shipments will start in the second half of 2026 and ramp up to larger volumes and next-generation Instinct chips in 2027. AMD CEO Lisa Su called the agreement “a true win-win,” and OpenAI CEO Sam Altman highlighted AMD’s high-performance products.

AMD’s stock skyrocketed 26% that fine Monday, rising 41% in one week. OpenAI’s hardware deals have market-moving power.

Image source: Advanced Micro Devices.

There are a few important quirks in AMD’s OpenAI deal.

One AMD Instinct card draws roughly 1,000 watts of power. Thus, 6 gigawatts’ worth of these AI accelerators should involve approximately 6 million processors. The current generation of Instinct MI350 cards is priced in the neighborhood of $20,000 per card, and the improved MI 450 series that OpenAI is buying (and later generations in a 5-year deal) may carry a higher price. So AMD’s revenue opportunity works out to $120 billion or more. Again, it’s over 5 years but still a significant growth driver.
The OpenAI deal was an eye-opener for investors, as well as for potential customers. If OpenAI thinks AMD chips are worth a huge multi-year commitment, other hyperscalers should give the Instinct series a whirl, too.

I must note that OpenAI isn’t going all-in on AMD accelerators. The ChatGPT maker inked an even larger chip-supply contract with Nvidia two weeks before the AMD Instinct announcement. However, that deal hardly moved Nvidia’s stock, as Wall Street had largely expected such an announcement.

AMD’s OpenAI partnership matters because it proves that AMD can compete with Nvidia where it matters the most. If you were waiting for a big AI win before investing in AMD stock, OpenAI just gave you 6 gigawatts of reasons to make that move.

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Anders Bylund has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.

How AMD Stock Beat the Market (and Nvidia) in 2025 was originally published by The Motley Fool
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January 15, 2026
OpenAI is making its own AI chips with Broadcom’s help

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OpenAI is hungry for as much compute power as it can get its hands on, and the company has signed another deal with a chipmaker to help make that happen. This time around, it’s teaming up with Broadcom to make custom chips and systems for use in both OpenAI’s infrastructure and its partners’ data centers.

OpenAI is designing the “AI accelerators” and systems. Broadcom will start deploying those racks in the second half of next year, the companies said. The aim is to complete the rollout by the end of 2029. The two companies are said to have started working together 18 months ago.

The deal is for 10 gigawatts of chips and it’s worth “multiple billions of dollars,” according to The Wall Street Journal. It was reported last month that OpenAI and Broadcom were making custom chips together. For what it’s worth, the latter’s CEO said recently that a new, unnamed client had put in an order worth $10 billion.

The Broadcom deal follows agreements that OpenAI recently struck with both NVIDIA and AMD. NVIDIA is investing $100 billion into OpenAI and will provide it with 10 gigawatts of AI infrastructure. The deal with AMD is for six gigawatts of compute power. OpenAI is said to be paying AMD tens of billions of dollars under that agreement and it could ultimately take up to a 10 percent stake in the company. As with the Broadcom rollout, both the NVIDIA and AMD deployments are expected to start in the second half of 2026. OpenAI also inked a deal with Oracle in July for 4.5 gigawatts in data center capacity as part of its Stargate Project.

According to recent reports, OpenAI CEO Sam Altman told employees that he wanted the company to build out 250 gigawatts of compute power over the next eight years, significantly up from the 2GW it’s expected to have by the end of this year. (For context, 250GW is about a fifth of the energy generation capacity of the entire US, which sits at around 1,200GW.)

As things stand, it would likely cost around $10 trillion to buy that much capacity. Altman said OpenAI would have to develop new financing tools to make that happen, but he hasn’t elaborated much on what those might look like. Even its current deals have OpenAI on the hook for hundreds of billions of dollars.

While the likes of NVIDIA and Microsoft have invested heavily into OpenAI, there isn’t a backer on the planet that can plow $10 trillion into the company. As things stand, OpenAI is very, very far away from making up the difference in revenue too. It’s reportedly expecting to make $13 billion in revenue this year.

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October 13, 2025
NVIDIA is investing up to $100 billion in OpenAI to build 10 gigawatts of AI data centers

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NVIDIA will invest up to $100 billion in OpenAI as the ChatGPT maker sets out to build at least 10 gigawatts of AI data centers using NVIDIA chips and systems. The strategic partnership is gargantuan in scale. The 10-gigawatt buildout will require millions of NVIDIA GPUs to run OpenAI’s next-generation models. NVIDIA’s investment will be doled out progressively as each gigawatt comes online.

The first phase of this plan is expected to come online in the second half of 2026, and will be built on NVIDIA’s Vera Rubin platform, which NVIDIA CEO will be a “big, big, huge step up,” over the current-gen Blackwell chips.

“NVIDIA and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT,” said Jensen Huang in a announcing the letter of the intent for the partnership. “Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with NVIDIA to both create new AI breakthroughs and empower people and businesses with them at scale,” said Sam Altman, CEO of OpenAI.

NVIDIA has made a number of strategic investments lately, including in Intel, shortly after the took a 10 percent stake in the American chipmaker. The company also recently to license AI technology from startup Enfabrica and hire its CEO and other key employees.

OpenAI has also formed other strategic partnerships over the last few years, including a somewhat complicated . This summer it struck a to build out 4.5 gigawatts of data center capacity using more than 2 million Oracle chips. That deal was part of , the strategic partnership between SoftBank, OpenAI, NVIDIA, Oracle, Arm and Microsoft with a promise to spend $500 billion in the US on AI infrastructure.

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Andre Revilla

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September 22, 2025