⚙️ The 6-Gigawatt Shock: OpenAI’s AMD Deal Is Rewiring the AI Trade — Here’s How to Position by Monday
OpenAI just signed a 6-gigawatt chip deal with AMD — a move that could finally challenge Nvidia’s dominance. Here’s what it means for AI stocks you can buy today.
Artificial intelligence just got a power boost. OpenAI has officially signed a multi-year deal with AMD (announced October 9, 2025) to buy and deploy 6 gigawatts of AI computer power. That’s enough energy to run several nuclear plants’ worth of data centers — all dedicated to AI.
The deal made headlines not just because of the size, but because it hands AMD a real shot at catching up to Nvidia, which has dominated the AI chip market. Investors noticed: AMD’s stock soared more than 25% after the announcement.
The details in plain English
- When was this signed? The agreement was formally announced in early October 2025 (Oct. 9th), and it’s a binding, definitive contract — not just a handshake.
- What is “2H 2026”? That means the second half of 2026 — July through December. That’s when the first chunk of capacity (about 1 gigawatt) is scheduled to go live.
- What’s a gigawatt? It’s a way of measuring huge amounts of power. One gigawatt can supply electricity to around 750,000 homes. In this case, it shows just how massive these AI data centers will be.
- Why it matters: OpenAI is betting big on AMD’s new chips (called “Instinct MI450”), while still working with Nvidia. It’s like picking two horse teams to pull the AI wagon — but AMD just got a seat at the front of the parade.
Market reaction right now
- AMD stock ripped higher — investors finally see it as a credible competitor to Nvidia in AI hardware.
- Nvidia stayed strong — because OpenAI also has a separate 10 GW deal in the works with Nvidia.
- Spillover into other stocks: Companies that supply servers, networking gear, cooling systems, and data centers also saw buying interest, because they’ll all need to expand to handle this surge in demand.
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