Tag Archives: next-generation

business, economy, international, science, technology

AMD shares surge 25% on chip supply deal with OpenAI

Leave a comment

**AMD Shares Soar 25% Following Major AI Chip Supply Deal with OpenAI**

*By Mudit Dube | October 6, 2025*

Advanced Micro Devices (AMD) has entered into a multi-year agreement to supply artificial intelligence (AI) chips to OpenAI, marking a significant milestone for both companies. This landmark deal is expected to generate tens of billions of dollars in annual revenue for AMD and offers OpenAI an option to acquire up to a 10% stake in the chipmaker.

The partnership serves as a strong endorsement of AMD’s AI chips and software capabilities and aligns with the company’s strategic efforts to deepen its presence in the fast-expanding AI market.

**Market Reaction: Shares Surge 25%**

Following the announcement, AMD shares jumped 25% in premarket trading. Forrest Norrod, AMD’s Executive Vice President, described the deal as “certainly transformative, not just for AMD, but for the dynamics of the industry,” highlighting its potential to reshape the AI chip landscape.

The agreement involves deploying hundreds of thousands of AMD AI chips and graphics processing units (GPUs), representing a capacity of six gigawatts over several years beginning in the second half of 2026.

**OpenAI to Establish 1-Gigawatt Facility Using AMD Chips**

A key component of the deal includes OpenAI’s plan to establish a one-gigawatt facility powered by AMD’s next-generation MI450 series chips starting next year. This facility is expected to kickstart revenue generation for AMD shortly thereafter.

AMD anticipates that this partnership, combined with ripple effects from other customers, could bring in more than $100 billion in new revenue over the next four years.

**Context and Industry Impact**

OpenAI CEO Sam Altman expressed confidence that the collaboration with AMD will help the organization build sufficient AI infrastructure to support its ambitious projects.

This development follows NVIDIA’s announcement to invest up to $100 billion in OpenAI and supply at least 10 gigawatts of its systems. Meanwhile, OpenAI continues to work on developing its own AI-specific silicon in partnership with Broadcom, underscoring its multi-faceted approach to building robust AI hardware capabilities.

—

This deal marks a pivotal moment in the AI hardware sector, emphasizing AMD’s growing influence and OpenAI’s commitment to scaling its AI infrastructure through diverse strategic partnerships.
https://www.newsbytesapp.com/news/business/amd-inks-multi-year-ai-chip-deal-with-openai/story

automotive, business, electric vehicles, luxury, technology

Porsche 718 Boxster and Cayman to retain their combustion engines

Leave a comment

**Porsche 718 Boxster and Cayman to Retain Combustion Engines**

*By Dwaipayan Roy | Sep 20, 2025, 06:46 PM*

**What’s the Story?**

Porsche has announced a significant shift in its electric vehicle strategy. The next-generation 718 Boxster and Cayman models will continue to offer combustion engine options for their “top” variants. This move aligns with the automaker’s broader plan to revamp the combustion engine and plug-in hybrid versions of the Cayenne and Panamera, ensuring these models remain relevant well into the 2030s, according to Porsche CEO Oliver Blume.

**Strategic Shift and Financial Impact**

As part of this strategy, Porsche will halt the development of the SSP 61 ‘Sport’ version of Volkswagen Group’s platform, resulting in a €1.8 billion financial hit. Originally, this platform was intended to support the K1 large SUV, along with electric successors for the Panamera and Taycan. Blume explained that the decision reflects a “clear drop in demand for exclusive battery-electric cars.”

**Update on the K1 Model**

The much-anticipated K1, described by Porsche as a ‘D-SUV,’ will now launch with combustion engine and plug-in hybrid variants instead of being fully electric. However, the company has not disclosed a specific launch date for this model. The change in plans follows a noticeable decline in luxury good demand in China, coupled with the US’s imposition of higher tariffs on imported vehicles.

**Financial Outlook**

These combined challenges are expected to reduce Porsche’s predicted net profit margin to around 2% for the current year. Nevertheless, the company remains optimistic about the medium-term outlook, aiming to boost margins above 10% with the introduction of new products.

Blume emphasized the company’s confidence in its revised approach:
*”This flexibility gives us a strong position with a compelling mix of combustion engines, plug-in hybrids, and battery electric vehicles.”*

—

With this strategic pivot, Porsche is balancing tradition and innovation to adapt to shifting market demands while maintaining its renowned performance legacy.
https://www.newsbytesapp.com/news/auto/porsche-to-offer-combustion-engines-in-next-gen-718-models/story