AMD’s new partnership with OpenAI allows it to purchase up to 6 gigawatts of computing power, while OpenAI also has a deal with Nvidia for 10 gigawatts. AMD’s stock price has surged over 40% since the announcement, making it more expensive than Nvidia’s. The deal involves AMD providing chips to OpenAI in exchange for shares that vest at certain milestones.

OpenAI’s deals with AMD and Nvidia are significant for the artificial intelligence landscape. While AMD’s stock has soared after the announcement, it now trades at nearly 40 times 2026 earnings, compared to Nvidia’s less than 30. Analysts have yet to adjust projections post-deal, and OpenAI’s first sales from the deal are not expected until the second half of 2026.

AMD’s deal with OpenAI could potentially bring growth, but it faces stiff competition from Nvidia, which has a more established presence in the AI hardware market. Nvidia’s partnership with OpenAI involves a significant investment in exchange for computing power, showing the company’s bargaining power in the AI space. It’s still early to declare a winner between AMD and Nvidia in the AI arms race.

Read more at Nasdaq: Is AMD a Better Buy Than Nvidia After Its OpenAI Deal?