AMD shares jumped 11% on October 8, extending their weekly gain to 43% after OpenAI announced plans to buy billions of dollars in AI equipment from the chipmaker.

OpenAI also entered an agreement that could give it up to a 10% stake in AMD, depending on the stock price and partnership milestones.

AMD’s market value has climbed to US$380 billion, following earlier gains of 4% on October 7, and 24% on October 6.

The partnership has fueled optimism that AMD could challenge Nvidia in the AI chip market.

Nvidia CEO Jensen Huang called the deal “imaginative” and “surprising,” while AMD CEO Lisa Su said its AI chips are ideal for large-scale data centers used by OpenAI and cloud providers.

🔗 Source: CNBC

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