by Coinstrooper Crypto Articles
Quick Take
  • The deal, according to the Financial Times, could also see OpenAI acquire up to a 10% stake in AMD over time.
  • AMD shares surged around 30% currently changing hands at about $225.
  • The chips purchased under this agreement will provide a total computing power capacity of 6 gigawatts (GW).
  • As a result, shares of AI and HPC-focused miners often rally on the back of such large-scale deals and infrastructure buildouts.

What Happened

The deal, according to the Financial Times, could also see OpenAI acquire up to a 10% stake in AMD over time. AMD shares surged around 30% currently changing hands at about $225.

It's shares were also higher by 5% on Monday as the AMD news combined with the company's launch of GalaxyOne, a new wealth management platform offering 4% yield on FDIC-insured cash and seamless auto-investment into crypto and U.S equities.

Market Context

The chips purchased under this agreement will provide a total computing power capacity of 6 gigawatts (GW). OpenAI executives estimate that 1 GW of capacity costs roughly $50 billion to develop, including chips and the necessary supporting infrastructure, according to the article.

In August, the company secured $1.4 billion in project financing to retrofit the facility and signed a long-term lease with CoreWeave (CRWV) covering up to 800 MW of compute capacity.

Why It Matters

The wave of massive contracts in the artificial intelligence (AI) and high-performance computing (HPC) sector continues, with the latest coming from OpenAI, which has agreed to buy tens of billions of dollars worth of chips from Advanced Micro Devices (AMD).

As a result, shares of AI and HPC-focused miners often rally on the back of such large-scale deals and infrastructure buildouts. During Monday’s U.S. open: Bitfarms (BITF) gained 8%, IREN (IREN) rose 12% to trade at all-time highs around $56, Hive Digital (HIVE) advanced 12%, Cipher Mining (CIFR) climbed 7%, CleanSpark (CLSK) added 5%, and TerraWulf (WULF) was also up 5%.

Details

Galaxy Expanding into AI/HPC

Galaxy Digital (GLXY) has emerged as a key beneficiary of the rapid re-pricing in the AI and HPC infrastructure sector, having converted its Helios campus into a large-scale AI/HPC data center.

GLXY shares are now up 116% year-to-date.