Remember when your friend got the same job you wanted, and you thought your career was over? Well, that’s basically what happened to AMD when Nvidia scored that massive $100 billion OpenAI deal a few weeks back. Except instead of sulking with a pint of ice cream, AMD went out and got their own OpenAI deal. And boy, did Wall Street notice.
AMD stock absolutely exploded on Monday, shooting up 38% faster than you can say “artificial intelligence.” We’re talking about a jump to $226.71 that had traders doing double-takes at their screens. The stock went from looking like the sad cousin at the AI family reunion to the life of the party in about five minutes.
So what’s the big deal? AMD just announced they’re becoming OpenAI’s new chip supplier – you know, the company behind ChatGPT that’s basically teaching computers to be smarter than most of us. Starting in Q2 2026, AMD will be deploying their fancy Instinct GPUs to power OpenAI’s ever-growing digital brain trust. We’re talking 6 gigawatts of computing power here, which sounds like something Doc Brown would get excited about.
But here’s where it gets spicy: OpenAI gets the option to buy a 10% stake in AMD. That’s right, the AI darling could literally own a piece of their chip supplier. AMD handed them a warrant for 160 million shares that vests as they hit certain milestones. It’s like giving your best customer a loyalty card, except this one could be worth billions.
The timing couldn’t be more perfect (or petty, depending on how you look at it). Just when everyone thought Nvidia had cornered the market on AI partnerships, AMD swoops in with their own OpenAI romance. Sam Altman, OpenAI’s CEO, even gave them the full endorsement treatment, praising AMD’s “leadership in high-performance chips” like they just won a tech Oscar.
This move is classic underdog strategy. While Nvidia was busy being the obvious choice, AMD was quietly building relationships and proving they could hang with the big kids. Now they’ve got their foot in the door of the hottest AI company on the planet, and investors are treating it like AMD just discovered fire.
The broader market implications? This deal proves that the AI gold rush isn’t a one-horse race. Sure, Nvidia might be the current king of AI chips, but AMD just reminded everyone that competition breeds innovation (and stock price explosions). For investors, it’s a beautiful reminder that sometimes the best plays come from the companies you least expect.
AMD’s year-to-date gains hit 88% at Monday’s peak, which means early believers are probably feeling pretty smug right about now. Not bad for a company that many wrote off as Nvidia’s perpetual runner-up.
The lesson here? Never count out the scrappy competitor, especially when there’s enough AI pie for everyone to get a slice. AMD just proved that sometimes the best revenge is massive success – and a 38% stock surge doesn’t hurt either.