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Advanced Micro Devices Inc. landed a blockbuster deal with OpenAI to build artificial intelligence infrastructure, giving the chipmaker a chance to show it can mount a challenge to Nvidia Corp. in the AI computing industry.

AMD shares soared 24% to $203.71 after the agreement was announced Monday, adding $63.4 billion to the company’s market valuation. It’s now worth $330.6 billion, more than Coca-Cola Co., General Electric Co. or Chevron Corp.

OpenAI will deploy 6 gigawatts’ worth of AMD graphics processing units over multiple years, according to the pact, which is just over half the size of an agreement the AI startup recently reached with Nvidia. It also sets the stage for OpenAI to acquire a large stake in the chipmaker.

The deal represents a high-stakes test for AMD — one that could deliver tens of billions of dollars in new revenue and burnish its status as a serious contender in AI technology. There are also risks: It further ties AMD’s prosperity to an AI market that some worry is in a bubble.

Today’s show features:
Bloomberg Tech Co-Host Ed Ludlow
Bloomberg Intelligence Global Head of Technology Research Mandeep Singh
Rick Welts, CEO of the Dallas Mavericks, and Bloomberg News Texas bureau Chief Julie Fine
Drive to the Close with Lesley Marks, CIO for Equities, Mackenzie Investments

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