AMD’s OpenAI Partnership Signals Strategic Shift in AI Infrastructure Race

Advanced Micro Devices (AMD) has cemented its position in the generative AI arms race through a landmark agreement with OpenAI. The five-year deal for 6 GW of compute infrastructure—valued at $80-$100 billion—prompted Jefferies to upgrade AMD to Buy with a $300 price target, a 76% premium to its previous target.

Analyst Blayne Curtis cited the partnership as validation of AMD's AI roadmap, noting the rare timing of the upgrade just weeks after prior estimates. While technical execution risks remain, the scale of OpenAI's commitment suggests AMD is transitioning from supporting player to Core infrastructure provider.

The deal coincides with surging demand for AI-optimized chips, with AMD's server products gaining traction against established competitors. Market observers now watch for Ripple effects across semiconductor valuations as hyperscalers lock in long-term capacity.