OpenAI Deal Sends AMD Shares Soaring 30% and Sparks Rally Across AI Mining Sector
OpenAI’s agreement to buy tens of billions of dollars in AMD processors boosts chipmaker’s shares 30% and lifts AI-linked miners across the market
OpenAI has reached an agreement to purchase tens of billions of dollars worth of computer chips from Advanced Micro Devices (AMD), sending the chipmaker’s stock soaring by 30% and sparking a rally across artificial intelligence and high-performance computing (HPC) sectors.
AMD Surges on Multi-Billion Dollar Chip Agreement with OpenAI as AI Miners See Double-Digit Gains
According to the Financial Times, the deal could give OpenAI up to a 10% stake in AMD over time. Shares of AMD climbed to around $225 following the announcement. The chips acquired under the deal are expected to deliver a total computing power capacity of 6 gigawatts. OpenAI executives estimate that each gigawatt of capacity costs about $50 billion to develop, factoring in both chips and supporting infrastructure.
The agreement triggered gains across AI-related and Bitcoin mining companies, which often benefit from major infrastructure expansion in the computing sector. Bitfarms rose 8%, IREN climbed 12% to a record $56, Hive Digital advanced 12%, Cipher Mining added 7%, CleanSpark increased 5%, and TerraWulf gained 5% during Monday’s U.S. trading session.
Galaxy Digital, which has converted its Helios campus into a large-scale AI and HPC data center, also benefited from the rally. In August, the company secured $1.4 billion in financing to upgrade the facility and signed a long-term lease with CoreWeave covering up to 800 megawatts of computing capacity. Galaxy shares rose 5% on Monday following the AMD announcement and the launch of its new GalaxyOne wealth management platform, which offers FDIC-insured cash accounts with a 4% yield and automated investments in crypto and U.S. equities.
Galaxy Digital’s shares have now risen 116% since the start of the year.