OpenAI’s AMD Deal Makes Investors Giddy, But Can They Handle the Ride?

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Markets

What to know:

  • In a deal that could make a whole lot of people very rich (or at least hopeful), OpenAI decided to purchase tens of billions of dollars worth of AMD chips, possibly giving it a 10% stake in the chipmaker. As a result, AMD shares skyrocket, up by 30%. Time to buy a yacht?
  • Meanwhile, AI miners are joining the rally like it’s a party they weren’t invited to. Bitfarms (BITF), IREN (IREN), Hive Digital (HIVE), Cipher Mining (CIFR), CleanSpark (CLSK), and TerraWulf (WULF) all posted gains between 5% and 12%. Who says mining is dead? Well, not them.

The winds of fortune keep blowing through the artificial intelligence (AI) and high-performance computing (HPC) sectors, and OpenAI is the latest to hitch its wagon to the rocket. The company has inked a deal to buy tens of billions of dollars worth of AMD chips, making some executives look like they just hit the jackpot. According to the Financial Times, OpenAI might even acquire up to a 10% stake in AMD. AMD’s shares are now dancing up 30%, currently trading around $225. Oh, sweet, sweet market drama.

But let’s get real. These chips, they don’t come cheap. The deal will provide OpenAI with a computing capacity of a mind-boggling 6 gigawatts (GW). For those who don’t speak tech, that’s enough to power a small country-or a really, really big server farm. To develop this capacity, 1 GW alone would cost about $50 billion, and that’s just for the chips and supporting infrastructure. Now you know why these deals make Wall Street swoon.

And it doesn’t stop there! AI and HPC miners seem to have caught the wave too, their stocks riding the tidal surge of these gigantic contracts. Monday’s open saw some thrilling jumps in stock prices. Bitfarms (BITF) gained 8%, IREN (IREN) surged 12%, Hive Digital (HIVE) climbed 12%, Cipher Mining (CIFR) went up by 7%, CleanSpark (CLSK) saw a modest 5%, and TerraWulf (WULF) rose by 5%. Those who bet on mining might be seeing some green in their portfolios today.

Galaxy Expanding into AI/HPC

Meanwhile, on the other side of the financial universe, Galaxy Digital (GLXY) is positioning itself as a key player in the AI/HPC game. The company has converted its Helios campus into a massive data center. No big deal, just a few gigawatts of power and a whole lot of servers. In August, Galaxy secured $1.4 billion in project financing to turn that facility into an AI powerhouse. They even signed a long-term lease with CoreWeave (CRWV) for up to 800 MW of compute capacity. To put that in perspective, that’s the kind of electricity that could light up a city-if it wasn’t busy running GPUs all day.

And guess what? Galaxy’s shares also rose by 5% on Monday, helped by the AMD news and the launch of their shiny new platform, GalaxyOne, which offers a 4% yield on FDIC-insured cash and smooth auto-investment into crypto and U.S equities. Because who doesn’t want to mix crypto with traditional wealth management, right?

But here’s the real kicker: GLXY’s shares are now up 116% year-to-date. That’s some pretty sweet returns, if you’re into that sort of thing. But don’t worry, the rollercoaster is far from over. Buckle up, folks!

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2025-10-06 18:05