<div id="readability-page-1" class="page"><div><div><p>Leading analysts are hailing <strong>Advanced Micro Devices Inc.'s</strong> (NASDAQ:AMD) new partnership with <strong>OpenAI</strong> as a breakthrough moment for the chipmaker, one that could propel it to the center of the AI arms race.</p><h2>Just The Start For AMD</h2><p>Analyst <strong>Dan Ives</strong> of Wedbush Securities said that the deal, which involves ChatGPT parent OpenAI deploying up to 6 gigawatts of AMD Instinct GPU power, brings the chipmaker “right into the AI revolution,” and that “any lingering fears around AMD should now be thrown out the window,” while speaking on CNBC’s Closing Bell on Monday.</p><p>Ives also termed the partnership as a “validation moment for AI” and said the “street is still massively underestimating the spending on the AI revolution.”</p><p>Ives added that he believes this market is still in its early stages. “We're in the second inning of a nine-inning game,” he said. “I think this is actually just the start for AMD, before this next stage of the AI revolution takes hold.”</p><h2>OpenAI’s Getting GPUs At A Discount</h2><p>New Street Research analyst, <strong>Pierre Ferragu</strong>, described the deal as “wild,” saying that “OpenAI is getting GPUs at an average 40% discount.” He also said that the deal increases AMD’s chances of becoming a “sustainable challenger” to <strong>NVIDIA Corp.</strong> (NASDAQ:NVDA).</p><h2>OpenAI’s Planned Build-Out ‘Roughly The Size of Mexico’s Economy’</h2><p>The Chief Market Strategist at Futurum Equities, <strong>Shay Boloor</strong>, notes that with the backing of Nvidia and AMD, OpenAI’s planned AI infrastructure buildout reaches $1.5 trillion, which he said was “roughly the size of Mexico's economy.”</p><p>“Wild times,” he said. </p><p>Vulcan Stock Research, an equity research firm, has since responded to Boloor’s comments, saying that the $1.5 trillion outlay will include the entire infrastructure, such as power, cooling, and facilities, among several other things, and not just chips. </p><p>In a post on X, the firm notes that the figure falls short of Mexico’s GDP, which currently stands at $1.789 trillion, but acknowledges it as an “unprecedented scale” of investment for AI. </p><p>Shares of AMD were up 23.71% on Monday, closing at $203.71, after the deal was announced, and are up another 1.99% after hours. The stock scores high across the board in <strong>Benzinga’s Edge Stock Rankings</strong>, apart from Value, and has a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock. </p><ul> <li><strong>Famed Short-Seller Jim Chanos Questions AMD’s Revenue Forecast Following OpenAI Deal: ‘Shouldn’t This Deal Bring In More… For $AMD?’</strong></li> </ul><p><em>Photo courtesy: Svet foto / Shutterstock.com</em></p></div></div></div>

OpenAI

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<p>Analysts are praising AMD's partnership with OpenAI, viewing it as a pivotal moment for the chipmaker in the AI sector. Dan Ives from Wedbush Securities believes this deal marks the beginning of AMD's significant role in the AI revolution, stating, "We're in the second inning of a nine-inning game." The deal reportedly allows OpenAI to acquire GPUs at a 40% discount, enhancing AMD's competitiveness against NVIDIA. OpenAI's planned AI infrastructure investment is estimated at $1.5 trillion, likened to Mexico's economy. AMD shares surged 23.71% following the announcement.</p>

- Advanced Micro Devices Inc. (NASDAQ:AMD) has partnered with OpenAI, deploying up to 6 gigawatts of AMD Instinct GPU power, marking a significant moment in the AI sector.  
- Analysts believe this partnership positions AMD as a strong competitor against NVIDIA Corp. (NASDAQ:NVDA), with OpenAI receiving GPUs at a 40% discount.  
- The planned AI infrastructure buildout by OpenAI is estimated at $1.5 trillion, reflecting unprecedented investment in AI, although it falls short of Mexico's GDP.

Analysts React To OpenAI's 'Wild' $100 Billion Deal With AMD: 'We're In The Second Inning of A Nine-Inning Game,' Says Dan Ives