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OpenAI-AMD pact adds fuel to boom, boosting AI stocks

The news of the day — OpenAI’s megadeal with Advanced Micro Devices that will see the former purchase tens of billions’ worth of AI GPUs and receive up to a 10% equity stake in the latter — is cascading out through markets, providing a lift to other companies in the ecosystem.

Nuclear energy firm Oklo is now an even more valuable zero-revenue company thanks to this news.
Server company Super Micro Computer also added to its advance, rising as much as 8% in early trading.
The world’s most important foundry company, TSMC, got a boost from this news, up more than 4%.
So-called “neocloud” Nebius jolted upward on this announcement, while peer CoreWeave (which is much more closely tied to Nvidia, which is down on the news) dipped, but has since reversed that drop to even outperform its counterpart.
Bitcoin miners turned data center companies IREN and Cipher Mining built on their early gains in response, though the latter has now given back most of that rise.

In other words, the deal is providing the same kind of reassurance on the strength of the AI boom that was seen in the wake of Microsoft and Meta’s most recent earnings announcements, which underscored their commitment to the AI data center build-out.

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AMD soars after striking megadeal with OpenAI that “is expected to deliver tens of billions of dollars in revenue”

OpenAI’s cash burn makes the investing world go ’round, and today, makes shares of Advanced Micro Devices go way up.

The chip designer is surging after being the latest to strike a pact with the Sam Altman-led venture to accelerate the AI build-out, which AMD CFO Jean Hu said “is expected to deliver tens of billions of dollars in revenue.”

The deal will see AMD sell multiple generations of its flagship GPUs to OpenAI, powering 6 gigawatts of its AI infrastructure. The first deployment is slated to start in the second half of 2026.

AMD’s AI GPU sales are expected to total $6.56 billion in fiscal 2025 and $10.26 billion in fiscal 2026 — and that latter figure is likely heading higher as analysts adjust estimates following this announcement.

It’s the latest in a series of recent aggressive steps from OpenAI to amass computing power for the AI boom, including massive deals with Broadcom and Oracle. To make good on these pacts will likely require equally aggressive moves from OpenAI to raise capital through private markets or, potentially, an IPO down the road.

Shares of Nvidia, the leader in AI GPUs, turned from positive to negative after this deal was announced.

As part of this agreement, AMD has issued warrants to OpenAI that enable the ChatGPT developer to receive 160 million shares, or about 10% of the company, if certain operational and stock price targets are hit over time.

“This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI build-out and advancing the entire AI ecosystem,” AMD CEO Lisa Su said.

“AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster,” added OpenAI cofounder and CEO Sam Altman.

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Claire Yubin Oh5h

QUBT drops after announcing another equity raise, agreeing to sell 37.2 million shares with expected gross proceeds of $750 million

Quantum Computing shares were trading 9% lower early on Monday after the company announced it had reached an agreement to sell 37.2 million shares of common stock in a private placement, raising some $750 million before fees and offering expenses.

The proceeds will be used to “fully fund commercialization, pursue strategic acquisitions, establish volume production capabilities, expand sales and engineering personnel, working capital, and general corporate purposes,” per the company’s press release. The closing of the “oversubscribed” offering is expected to occur around October 8.

The latest stock sale takes advantage of the recent run-up in the shares — QUBT was up some 60% in the past month — as investors have bid up quantum computing stocks after a series of new deals with governments and affiliated agencies, with reports that the Trump administration regards the technology as an R&D budgetary priority for fiscal 2027.

This offering takes the total capital raised since November 2024 to $1.64 billion — notable dilution for shareholders of the $4.6 billion market cap company.

Per the press release, Quantum Computing is now positioned “with the strongest balance sheet among publicly traded quantum computing companies and providing what we believe is sufficient funding to execute our current business plan through 2028,” said Dr. Yuping Huang, CEO of Quantum Computing.

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Critical Metals soars after Reuters reports US government interest

Critical Metals has climbed on exclusive Reuters reporting that the Trump administration is in talks to take a stake in the company, a move that would build on recent deals where the government has built positions in mining businesses like Lithium Americas and MP Materials.

As Reuters wrote, if the talks are successful, the agreement would give the US government a direct interest in Greenland’s biggest rare earths mining project, after Critical Metals increased its stake in Tanbreez Mining Greenland AS from 42% to more than 92% just last week.

Though the company refused to comment and a government official told Reuters that there was “absolutely nothing close with this company at this time,” the potential stake would build on the government’s interest in the island, with the president having publicly mulled options to take control of Greenland in the past, as well as its increasing attention to critical minerals.

Back in August, for instance, it was reported that the government was considering reallocating at least $2 billion of funds from the CHIPS Act to put toward critical mineral projects, looking to curb its dependence on China for rare earths, which are used widely across defense, technology, and consumer electronics.

Exclusive: Trump administration eyes stake in company developing Greenland rare earths mine

Exclusive: Trump administration eyes stake in company developing Greenland rare earths mine

As Reuters wrote, if the talks are successful, the agreement would give the US government a direct interest in Greenland’s biggest rare earths mining project, after Critical Metals increased its stake in Tanbreez Mining Greenland AS from 42% to more than 92% just last week.

Though the company refused to comment and a government official told Reuters that there was “absolutely nothing close with this company at this time,” the potential stake would build on the government’s interest in the island, with the president having publicly mulled options to take control of Greenland in the past, as well as its increasing attention to critical minerals.

Back in August, for instance, it was reported that the government was considering reallocating at least $2 billion of funds from the CHIPS Act to put toward critical mineral projects, looking to curb its dependence on China for rare earths, which are used widely across defense, technology, and consumer electronics.

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