OpenAI's Bold Move Just Reset the AI Race VIEW IN BROWSER Something big just shifted in the AI world. You see, OpenAI CEO Sam Altman and the folks over at OpenAI have been busy. And I’m not talking about just another chatbot update. The ChatGPT creator just inked another deal – in a series of deals – that could redefine who controls the future of artificial intelligence. On Monday, we learned that the company reached a deal for a massive amount of computing power. That follows a similar agreement last week with NVIDIA Corporation (NVDA). In fact, the list (and scale) of OpenAI’s deals is staggering... - A $300 billion Oracle Corp. (ORCL) cloud partnership starting in 2027,
- A $100 billion pact with NVIDIA,
- $11.9 billion with CoreWeave Inc. (CRWV),
- $10 billion with Broadcom Inc. (AVGO),
- And $500 billion on the “Stargate Project,” a joint venture with Oracle and SoftBank Group Corp. (SFTBY) to build planetary-scale data centers.
If you’ve lost count, that’s nearly a trillion dollars in deals. And here’s what’s fascinating about the whole thing. The biggest players in this race can’t seem to decide if they’re rivals or partners. They battle for market share one day… and rely on each other the next. It’s a digital ecosystem so tightly woven that if one stumbles, the whole system shakes. But now, we can finally see how the power structure is forming. So, in today’s Market 360, I’ll break down what this new alliance means for the AI race, which of the stocks I am backing and how it sets the stage for the next big leap in computing power. A Multibillion-Dollar Bet on AI On Monday, shares of AMD surged more than 20% after the company announced a multibillion-dollar deal with OpenAI. The agreement gives OpenAI access to roughly six gigawatts of computing power from AMD’s chips, with the first gigawatt expected to come online in the first half of 2026. In return, AMD granted OpenAI a warrant to buy up to 160 million shares of its common stock – about 10% of the company – for just one penny per share. But there’s a catch. Those shares only vest if certain performance milestones are met, including one that requires AMD’s stock to top $600, nearly triple its current price. Now, you may be asking why AMD would take a deal like this – one where it essentially pays $33 billion (10% of its recent market cap) for OpenAI to take the deal. First, the accompanying surge in share price – to the tune of about $100 billion – more than makes up for the potential dilution. Second, it gives AMD a seat at the table. By tying their fortunes together, AMD gains a “seal of approval” from the hottest private company in the world. For OpenAI, this deal diversifies its supply chain and ensures it can continue scaling its AI models beyond NVIDIA’s already maxed-out graphic processing unit (GPU) capacity. As I mentioned in last Thursday’s Market 360, OpenAI has already signed a $100 billion agreement with NVIDIA to supply 10 gigawatts of computing capacity. So, this AMD deal is the next logical step – part of OpenAI’s broader plan to secure more than 20 gigawatts of total data-center power in the coming years. That’s the scale of this AI arms race: hundreds of billions flowing into data centers, chips and power systems to keep up with model training. With these agreements, the fates of OpenAI, NVIDIA and AMD are formally intertwined. In other words, if data is the new oil, then these companies are the new OPEC. And together, these partnerships form the backbone of an AI economy expanding faster than almost anyone imagined. AMD vs. NVDA – Which Stock Is Better? All of this is well and good, but as investors the real question is... Which of these AI companies should you own in your own portfolio? Well, it is easy to rule out OpenAI as it is not a publicly traded company. So, it all boils down to NVDA vs. AMD. As I mentioned above, AMD is chasing NVDA’s crown, but it has a long way to go. In fact, my Stock Grader (subscription required) sheds some light on this question…  And the answer is, clearly, NVIDIA. NVIDIA boasts a strong quantitative and fundamental grade, giving it a “B” (Strong) rating overall. Meanwhile, AMD may have strong fundamentals, but its weak quantitative grades drag the whole stock down, which is why the stock earns a Total Grade of D (Weak). Now, the quant rating – which gauges institutional buying pressure – is likely to change after this week’s developments. But the real test will be whether the buying pressure persists. Bottom line: AMD may be making big moves this week, but it doesn’t have the institutional support to back it up. So, NVIDIA remains the stronger stock. The Power Behind It All NVIDIA’s leadership isn’t just about better fundamentals or stronger buying pressure – it’s about power. Its chips are the engines behind every major AI model on the planet. Nearly every data center, research lab and AI-driven company depends on NVIDIA’s technology to run. That’s why, even after its historic run, I continue to call NVIDIA the Stock of the Decade. The more the AI industry expands, the more dominant NVIDIA becomes. Think about it: OpenAI alone just agreed to purchase 10 gigawatts of compute capacity from NVIDIA, or roughly four million to five million GPUs, to train the next generation of AI models. Add in AMD’s new partnership into the mix, and the global race for computing power is accelerating. But as remarkable as its GPUs are, I believe NVIDIA’s next breakthrough could be even more transformative. It would be a leap so powerful that Bank of America says it may be “the biggest revolution for humanity since discovering fire.” This breakthrough could be 1,000 times more powerful than today’s AI, igniting what I call The NVIDIA Shock of 2025. This next era of computing could create an entirely new wave of millionaires. And in my latest briefing, I explain why this technology is arriving faster than most investors expect and how it could reshape entire industries once again. I also share details on the small group of companies I believe could soar alongside NVIDIA as this revolution unfolds. If you missed out on NVIDIA’s 150X boom, this could be your second chance… and it may be even bigger. Click here to watch my urgent briefing now. Sincerely, | .png)
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