Advanced Micro Devices ($AMD) saw its stock jump more than 60% in October after the company announced a new deal with OpenAI (PC:OPAIQ). The rally

AMD's data center revenue should generate $4.1 billion in Q3, up from $3.5 billion in the prior year, while the company's client segment, which includes sales of CPUs for laptops and desktops, should see $2.6 billion, up 38% year over year. AMD's gaming division is expected to pull in $1.1 billion, up 139%.

OpenAI's (OPENAI) deals over the past month with the who's who of tech giants have swollen to hundreds of billions of dollars.

Shares of the chipmaker surged on Monday, putting them on track for their biggest one-day gain in over nine years and adding roughly $80B to its market value.

While this deal is important for AMD, what it really signaled was that a leading generative AI company plans on using AMD's hardware. That's a big deal, as AMD's technology has always been seen as a downgrade from Nvidia.

OpenAI partners with semiconductor giant AMD to utilize next-generation graphics processing units for powering AI advancements.

The five-year agreement will challenge Nvidia’s market dominance, gives OpenAI 10% of AMD if it hits milestones for chip deployment.

Chips aren’t the only star of the massive agreement. AMD’s software efforts have slowly turned it into a more formidable competitor to Nvidia.

OpenAI has committed to spend about $1.4 trillion on infrastructure so far, equating to roughly 30 gigawatts of data center capacity, CEO Sam Altman said on Tuesday. Why it matters: The statement helps clarify the many announcements the company has made with its chip,