Advanced Micro Devices (AMD) CEO Lisa Su says it’s time for the tech world to think bigger about artificial intelligence.
“I would say that’s probably thinking too small,” Su told Yahoo Finance on Monday when asked about concerns that massive AI investments may be getting ahead of themselves. “You have to really look at what the power of this technology can do for the world.”
Su said the company is “investing at the right pace because we want to accelerate … this is a place where [and] when companies and partners make bold moves, it will be rewarded.”
Shares of AMD jumped by as much as 35% on Monday after the company announced a multibillion-dollar partnership with OpenAI (OPAI.PVT), one of the largest infrastructure deals to date. The move will see AMD supply up to 6 gigawatts of GPUs to the ChatGPT maker over several years, starting with its upcoming MI450 chips in the second half of 2026.
Under the agreement, AMD also issued OpenAI warrants for up to 160 million shares, or roughly 10% of the company. Shares will vest in stages as AMD hits milestones, beginning once the company deploys its first 1 gigawatt of chips.
Su said the deal could generate “tens of billions of dollars” in revenue for AMD over the next few years. Additionally, the agreement culminates years-long discussions with OpenAI.
The news comes on the heels of Nvidia’s (NVDA) own $100 billion bet on OpenAI, underscoring the escalating race to build out AI infrastructure. Nvidia has also announced a $5 billion investment in Intel (INTC) to co-develop data centers and PC products.
AMD has spent the past two years trying to chip away at Nvidia’s AI GPU dominance. Nvidia commands roughly 90% of the market.
Wall Street is cautiously optimistic about AMD’s OpenAI deal.
Barclays analyst Tom O’Malley said the structure — which includes stock warrants triggered by milestones and a $600 share price target — “is designed to be mutually beneficial,” but is also aimed at “driving the stock higher.”
He estimates the deal could add $18 billion in annual revenue and $3 per share in quarterly earnings per share by 2030 if deployment progresses as expected.
Citi analyst Atif Malik noted the announcement also benefits other AI ecosystem players, including Astera Labs (ALAB), which supplies networking infrastructure tied to AMD’s new Helios platform.
“We see the news positively for ALAB as it is a leader in open AI networking ecosystems,” Malik wrote, calling Helios a “key catalyst” for the broader AI hardware landscape.
Advanced Micro Devices (AMD) CEO Lisa Su says it’s time for the tech world to think bigger about artificial intelligence.
“I would say that’s probably thinking too small,” Su told Yahoo Finance on Monday when asked about concerns that massive AI investments may be getting ahead of themselves. “You have to really look at what the power of this technology can do for the world.”
Su said the company is “investing at the right pace because we want to accelerate … this is a place where [and] when companies and partners make bold moves, it will be rewarded.”
Shares of AMD jumped by as much as 35% on Monday after the company announced a multibillion-dollar partnership with OpenAI (OPAI.PVT), one of the largest infrastructure deals to date. The move will see AMD supply up to 6 gigawatts of GPUs to the ChatGPT maker over several years, starting with its upcoming MI450 chips in the second half of 2026.
Under the agreement, AMD also issued OpenAI warrants for up to 160 million shares, or roughly 10% of the company. Shares will vest in stages as AMD hits milestones, beginning once the company deploys its first 1 gigawatt of chips.
Su said the deal could generate “tens of billions of dollars” in revenue for AMD over the next few years. Additionally, the agreement culminates years-long discussions with OpenAI.
The news comes on the heels of Nvidia’s (NVDA) own $100 billion bet on OpenAI, underscoring the escalating race to build out AI infrastructure. Nvidia has also announced a $5 billion investment in Intel (INTC) to co-develop data centers and PC products.
AMD has spent the past two years trying to chip away at Nvidia’s AI GPU dominance. Nvidia commands roughly 90% of the market.
Wall Street is cautiously optimistic about AMD’s OpenAI deal.
Barclays analyst Tom O’Malley said the structure — which includes stock warrants triggered by milestones and a $600 share price target — “is designed to be mutually beneficial,” but is also aimed at “driving the stock higher.”
He estimates the deal could add $18 billion in annual revenue and $3 per share in quarterly earnings per share by 2030 if deployment progresses as expected.
Citi analyst Atif Malik noted the announcement also benefits other AI ecosystem players, including Astera Labs (ALAB), which supplies networking infrastructure tied to AMD’s new Helios platform.
“We see the news positively for ALAB as it is a leader in open AI networking ecosystems,” Malik wrote, calling Helios a “key catalyst” for the broader AI hardware landscape.
