Advanced Micro Devices signed a pact with Microsoft (MSFT)-backed OpenAI to roll out AI infrastructure.
Shares of AMD surged about 25% premarket on Monday.
The companies inked an agreement for OpenAI to deploy six gigawatts of AMD graphics processing units, or GPUs, over multiple years, and multi-generation agreement.
AMD has issued OpenAI a warrant for up to 160 million shares, which will vest upon achievement of milestones.
The targets require AMD’s stock price to continue to increase in value and future exercise points include a tranche tied to a share price of $600, as per Bloomberg News.
AMD shares closed at $164.67 on Friday.
AMD and OpenAI
The deal is among the latest being carried out by OpenAI build out more computing capacity amid the AI boom.
Last month, Nvidia (NVDA) said it plans to invest up to $100B in OpenAI progressively to build and deploy at least 10 gigawatts of AI data centers with Nvidia systems.
More to follow…