Shares of AMD surged more than 34% to touch a more than one-year high of $226.71 and added $80 billion to its market capitalization

International News via Reuters:

AMD said on Monday it will supply artificial intelligence chips to OpenAI in a multi-year deal that would bring in tens of billions of dollars in annual revenue and give the ChatGPT creator the option to buy up to roughly 10% of the chipmaker.

Shares of AMD surged more than 34% to touch a more than one-year high of $226.71 and added $80 billion to its market capitalization.

The latest deal, among a string of investment commitments, is a testament to OpenAI and the broader AI industry’s voracious appetite for computing power as companies race toward developing AI technology that meets or exceeds human intelligence.

The deal offers OpenAI an opportunity to take a stake in one of Nvidia’s most formidable rivals and is a major vote of confidence in AMD’s AI chips and software.

“We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry,” AMD executive vice president Forrest Norrod told Reuters on Sunday.

The agreement covers the deployment of hundreds of thousands of AMD’s AI chips, or graphics processing units (GPUs), equivalent to six gigawatts, over several years beginning in the second half of 2026. This is roughly equivalent to the energy needs of 5 million U.S. households, or the electricity produced by the Hoover Dam thrice over.

AMD said OpenAI would build a one-gigawatt facility based on its forthcoming MI450 series of chips beginning next year, and that it would begin to recognize revenue then.

AMD executives expect the deal to net tens of billions of dollars in annual revenue. Because of the ripple effect of the agreement, AMD expects to receive more than $100 billion in new revenue over four years from OpenAI and other customers, they said.

“Other people are going to come along with it because this is really the pioneer, a pioneer in the industry that has a lot of influence over the broader ecosystem,” AMD strategy chief Mat Hein said.

The deal with AMD will help OpenAI build enough AI infrastructure to meet its needs, OpenAI CEO Sam Altman said in a statement.

It was not immediately clear how OpenAI would fund the massive deal with AMD.

OpenAI has generated around $4.3 billion in revenue in the first half of 2025 and has burned through $2.5 billion in cash, according to media reports, as the startup splurges on attracting top talent, while investing heavily in developing new AI tools.

Analysts, on average, estimate AMD will generate revenue of $32.78 billion this year, according to LSEG data.

As part of the arrangement, AMD issued a warrant that gives OpenAI the ability to buy up to 160 million shares of AMD for 1 cent each over the course of the chips deal. The warrant vests in tranches based on milestones that the two companies have agreed on.

The first tranche will vest after the initial shipment of MI450 chips set for the second half of 2026. The remaining milestones include specific AMD stock price targets that escalate to $600 a share for the final installment of stock to unlock.

OpenAI has a valuation of $500 billion.

OPENAI WANTS MORE GPUs

OpenAI has worked with AMD for years, providing inputs on the design of older generations of AI chips such as the MI300X.

The San Francisco-based AI company has been taking a number of steps to ensure it has the chips needed for its future needs.

In September, Nvidia announced an investment of up to $100 billion in OpenAI that included a plan to supply at least 10 gigawatts worth of Nvidia systems. The plan includes OpenAI deploying a gigawatt of Nvidia’s next-generation Vera Rubin chips in late 2026.

Altman has floated expectations of reaching 250 gigawatts of compute in total by 2033, The Information has reported.

In addition to using Nvidia hardware, cloud computing giants such as Alphabet’s Google and Amazon build their own in-house processors. Similarly, OpenAI is in the process of developing its own silicon for AI use and has partnered with Broadcom, Reuters reported last year.

Shares of Nvidia dipped more than 1%, while those of Broadcom were little changed.

OpenAI and its main backer Microsoft also announced last month that they had signed a non-binding agreement to restructure OpenAI into a for-profit entity, signaling further changes in the governance of the fast-growing AI company.

A person familiar with the matter said the deal with AMD does not change any of OpenAI’s ongoing compute plans, including that effort or its partnership with Microsoft.

Reporting by Max A. Cherney in San Francisco; Additional reporting by Deepa Seetharaman in San Francisco and Arsheeya Bajwa in Bengaluru; Editing by Muralikumar Anantharaman and Anil D’Silva

The institute said all three laureates brought to the fore so-called regulatory T cells, a class of white blood cells that act as the immune system’s security guards

International News via Reuters:

American scientists Mary Brunkow and Fred Ramsdell and Shimon Sakaguchi from Japan won the 2025 Nobel Prize in Physiology or Medicine on Monday for work shedding light on how the immune system spares healthy cells, creating openings for possible new autoimmune disease and cancer treatments.

Their discoveries relate to peripheral immune tolerance, or “how we keep our immune system under control so we can fight all imaginable microbes and still avoid autoimmune disease”, said Marie Wahren-Herlenius, a rheumatology professor at Sweden’s Karolinska Institute, the awarding body.

The institute said all three laureates brought to the fore so-called regulatory T cells, a class of white blood cells that act as the immune system’s security guards that keep immune cells from attacking our own body.

RESEARCH INTO WHAT STOPS IMMUNE SYSTEM ATTACKING ITSELF

Brunkow, who found out she had won after being woken by her dog barking at a news photographer on the front porch of her Seattle home, said she, Ramsdell and their colleagues had isolated a gene called FOXP3 that could be used as a marker for the cells.

“They’re rare, but powerful, and they’re critical for sort of dampening an immune response,” she said in an interview, describing the cells as a braking system that prevents the body’s immune system from tipping over into attacking itself.

Sakaguchi expressed surprise at a press conference in Osaka, western Japan, because he felt any major recognition would have depended on more development advances.

“I used to think that some sort of reward may be forthcoming if what we have been doing will advance a little further and it will become more beneficial to people in clinical settings,” he said in a calm voice, cracking a smile now and then.

The press conference was interrupted for Sakaguchi to take a congratulatory phone call from Japanese Prime Minister Shigeru Ishiba, who asked him how effective immunotherapy could be for cancer treatment in the future.

“I believe the time will come when cancer is no longer a scary disease, but a curable one,” said Sakaguchi.

The winners of the award are selected by the Nobel Assembly of the Karolinska Institute, a leading medical university, and receive a prize sum of 11 million Swedish crowns ($1.2 million), as well as a gold medal presented by Sweden’s king.

Brunkow is senior programme manager at the Institute for Systems Biology in Seattle, while Ramsdell is scientific adviser at Sonoma Biotherapeutics in San Francisco. Sakaguchi is a professor at Osaka University.

MORE THAN 200 TRIALS ON HUMANS IN PROGRESS

Jeffrey Bluestone, a decades-long friend of Ramsdell and a co-founder with him of Sonoma Biotherapeutics, told Reuters that his associate’s extraordinary contribution was finding the FOXP3 gene, initially in mice, that controlled the development of regulatory T cells. They described their findings in a paper in 2001.

“Those cells were the master regulators of the tolerance of the immune system,” said Bluestone.

Ramsdell could not be reached by Reuters – nor by Brunkow or Bluestone, with Bluestone saying he may be on a hiking trip in an area without cell phone reception.

After announcing the winners, the Karolinska Institute’s Thomas Perlmann said specific therapies had yet to win market clearance but more than 200 trials on humans involving regulatory T cells were ongoing.

Among companies in the early race, Ramsdell’s Sonoma Biotherapeutics is partly funded and supported by U.S. drugmaker Regeneron to work on therapies against diseases including inflammatory bowel disease.

Also targeting that condition, Quell Therapeutics has partnered with AstraZeneca. Other biotech firms exploring the approach include Bayer’s BlueRock.

MEDICINE THE FIRST PRIZE OF NOBEL SEASON

The Nobel Prizes were established through the will of Alfred Nobel, the Swedish inventor of dynamite and a wealthy businessman.

They have been awarded since 1901 for outstanding contributions in science, literature, and peace. The economics prize was added later and is funded by Sweden’s central bank.

Winners are selected by expert committees from various institutions. All prizes are awarded in Stockholm, except for the Peace Prize, which is presented in Oslo.

Past recipients of the Nobel Prize in Physiology or Medicine include renowned scientists such as Alexander Fleming, who shared the 1945 award for discovering penicillin. In recent years, the prize has recognized major breakthroughs, including those that enabled the development of COVID-19 vaccines.

Last year’s medicine prize was awarded to U.S. scientists Victor Ambros and Gary Ruvkun for their discovery of microRNA and its key role in how multicellular organisms grow and live. 

Medicine in accordance with tradition kicks off the annual Nobels. The physics award is next, on Tuesday.

The awards culminate in ceremonies attended by the royal families of Sweden and Norway, followed by lavish banquets held on December 10 – the anniversary of Alfred Nobel’s death.   

($1 = 9.3898 Swedish crowns)

Reporting by Niklas Pollard, Johan Ahlander in Stockholm; Additional reporting by Terje Solsvik in Oslo, Jonathan Allen in New York, Kiyoshi Takenaka in Tokyo and Marie Mannes and Greta Fondahn in Stockholm; Writing by Ludwig Burger in Frankfurt; editing by Alex Richardson