Bloomberg Intelligence OpenAI inks AMD Chips Deal Worth Tens of Billions of Dollars
Oct 6, 2025
A groundbreaking deal between AMD and OpenAI promises to generate tens of billions in revenue, focusing on AI infrastructure. Meanwhile, Fifth Third Bancorp's acquisition of Comerica marks the largest U.S. bank deal this year, stirring discussions on regional banking dynamics. Verizon's surprising CEO change signals new directions in consumer finance strategy. Lastly, experts delve into the electric vehicle transition, examining challenges traditional automakers face and the market's response to shifting tax credits.
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AMD-OpenAI Deal Is Capacity-Driven
- Ed Ludlow highlights that AMD's deal with OpenAI focuses on inference capacity, not training, and involves six gigawatts of power.
- He notes AMD will issue stock to OpenAI in tranches tied to data-center build milestones, not upfront cash.
Stock Issuance Tied To Milestones
- Ludlow stresses the deal's stock delivery depends on OpenAI spending and building data centers before shares vest.
- He warns the timing and cash needs matter because OpenAI must fund construction before receiving AMD shares.
AI Numbers Feel Toppy
- Paul and Ed caution that massive AI revenue figures can feel 'toppy' and create market discomfort.
- They suggest skepticism due to very large numbers being thrown around in AI deals.