changer

AMD Stock Skyrockets on Massive Deal With OpenAI. Could This Be a Game Changer for AMD?

The chipmaker just got a huge vote of confidence from the creator of ChatGPT.

Since the advent of artificial intelligence (AI) in early 2023, Advanced Micro Devices (AMD 25.63%) has been something of a wild card. The increasing demand for graphics processing units (GPUs) that can handle the rigors of AI has been unparalleled, but not all AI chipmakers are created equal.

There’s no denying that Nvidia (NVDA -1.13%) has been the biggest beneficiary of the accelerating adoption of AI, given its status as a market share leader in the data center space, where most AI processing occurs. Nvidia has ridden this unprecedented demand to new heights, becoming the largest publicly traded company in the world when measured by market cap.

While Nvidia stock has soared 1,180% since the dawn of AI, AMD stock has only risen 154% during the same period (as of market close on Friday). The company has been working diligently to stake its claim in the windfall that is AI.

Shareholders were elated when AMD announced a groundbreaking deal with OpenAI that could be a game changer. As a result, the stock gained 30% Monday morning (as of this writing) — and that could be just the beginning.

AMD headquarters building with the AMD logo near the roof.

Image source: AMD.

Far-reaching strategic partnership

OpenAI is largely credited with kick-starting the AI revolution, thanks to its development of ChatGPT, the generative AI system that took the technology to the next level. In a press release that dropped Monday morning, AMD announced a far-reaching strategic partnership with OpenAI.

Under the terms of the multiyear, multigenerational agreement, OpenAI will install 6 gigawatts of AMD GPUs. The rollout will begin with 1 gigawatt of AMD Instinct MI450 series chips and rack-scale AI solutions in the second half of 2026. Beyond simply supplying GPUs, AMD will work side by side with OpenAI as a “core strategic compute partner” to create future generations of AI chips optimized for AI applications.

The companies noted that the partnership began with the MI300X and continued with the MI350X series of chips. Many experts believe these processors are a competitive alternative to Nvidia’s advanced AI chips at a lower price, making them ideal for use with the large language models that underpin generative AI.

Perhaps the most eye-opening development is that, as part of the agreement, AMD has issued OpenAI a warrant to purchase up to 160 million shares of AMD stock — equal to a roughly 10% stake in the company — contingent upon the company achieving specific share price targets and OpenAI reaching certain technical and commercial milestones.

The first tranche is scheduled to vest on the completion of the deployment of the first gigawatt of GPUs, with additional milestones at the completion of each successive gigawatt.

Is this deal a game changer?

In many cases, saying a deal is a game changer is hyperbole, but in this case, I don’t believe it’s an exaggeration. In its recent financing deal, OpenAI was valued at roughly $500 billion, making it the world’s most valuable start-up. Furthermore, the company has quickly ascended the ranks to become one of the largest buyers of high-end AI-centric chips as it works to development its next-generation AI systems.

Assuming things go as planned, this deal provides AMD with a relatively secure revenue stream that the company estimates will be worth tens of billions of dollars. For context, the company generated revenue of nearly $26 billion in 2024, which helps to illustrate the magnitude of the opportunity.

Furthermore, this deal acts as a ringing endorsement for AMD’s processors. For potential buyers of AMD chips sitting on the fence, this could be the catalyst for taking the plunge and adopting the company’s AI solutions.

Some investors have been concerned that the adoption of AI will hit a wall, but there’s simply no evidence to support these assertions. Furthermore, estimates regarding the addressable market for generative AI continue to climb. Big Four accounting firm PwC estimates the market could be worth as much as $15.7 trillion annually by 2030.

If AMD can carve out just a small piece of that massive opportunity, today’s stock price move could be just the beginning. Furthermore, at roughly 35 times next year’s sales, AMD stock is attractively priced relative to the burgeoning opportunity.

Danny Vena has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.

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Nippon Steel, U.S. Steel Tie-Up Could Be A ‘Game Changer’

The deal, which has many critical details to iron out, by Japan’s top steelmaker creates a formidable global competitor and helps revive U.S. Steel’s competitiveness.

After a tortuous 18 months of presidential orders, lawsuits, and heated electoral campaign rhetoric, Japan’s Nippon Steel at last controls U.S. Steel. The deal, which forms the world’s fourth largest steelmaker, was concluded on June 18, and ironically, the terms were essentially the same ones the two companies agreed to in December 2023: $55 per share for 100% of shares outstanding, or $14.9 billion.

“This partnership ensures that U.S. Steel will retain its iconic name and headquarters in Pittsburgh, Pennsylvania, and that it will continue to be mined, melted, and made in America for generations to come,” Nippon and US Steel declared in a statement.

For the acquirer, the deal is expensive and ambitious. It paid an enormous premium for a US company on a long-term downward trajectory; earlier this year, USX stock was trading at $30 a share. But Nippon Steel also promised to invest $11 billion in refurbishing and upgrading U.S. Steel facilities by 2028, including building a new mini-mill—moves it said will create 100,000 new jobs—and import some of its own innovative technologies to its new US operations.

Should all go as the two companies are hoping it does, the deal could be a “game changer” for both, says Tiago Vespoli, senior research analyst at Wood Mackenzie. It simultaneously makes Nippon Steel a more robust competitor globally, he argues, while giving U.S. Steel a solid chance to regain its competitive strength, including against Cleveland Cliffs, the big rival that earlier offered to buy it.

“Nippon Steel is a large, extremely experienced, very well-capitalized operator globally,” notes Kyle Lundin, principal consultant, Metals & Mining at Wood Mackenzie, and it brings to the table its expertise in more energy-efficient methods of steelmaking, including direct reduced iron (DRI) and electric arc furnace (EAF) processes. U.S. Steel offers its Big River Steel facility in Osceola, Arkansas, which produces high-quality electrical steel, suggesting that the two companies complement each other in ways that could make them both more sophisticated producers.

Nippon Steel has very publicly been on a hunt for growth for several years, given that its home market is not growing, and the purchase of U.S. Steel establishes a major presence for it in one of the three largest steel markets in the world by demand—with freedom from worry over Washington’s tariff policy. It’s also a “truly transcontinental deal,” Lundin observes, since U.S. Steel owns one of the largest integrated steel facilities in Central Europe, in Košice, Slovakia. As a global producer, the deal doesn’t make Nippon Steel a lot bigger—it remains the world’s fourth largest—but the company emerges as a more formidable global competitor, especially against the industry giant, ArcelorMittal.

Eyes On The Government’s Golden Share

That said, the future for the two companies—and even some details of the deal itself—remain to be seen. “Between the actual structure of the deal, and then just some strategic considerations, there’s quite a lot that’s been filled in around the edges, but still a lot of unknowns as well,” Lundin notes.

Full details about the US government’s much-discussed golden share, which is contained in a national security agreement that President Trump signed days earlier, are still being drip-fed. Reportedly the government will have veto power (“consent rights”) over such matters as closing or idling factories and the transfer of jobs or production outside the US—but no actual financial stake in the company. And the June 18 announcement still referred to the new ownership, puzzlingly, as a “partnership,” despite the fact that the Japanese acquirer now owns all of U.S. Steel’s shares.

The union that represents a large majority of U.S. Steel employees, the United Steelworkers, is taking a wait-and-see stance after having fiercely opposed the deal, but its collective bargaining agreement with the company expires in September 2026. That gives the new management—which reportedly will not include current CEO David Burritt—little more than a year to demonstrate that it can keep its promises of new investment and new jobs.

Perhaps the biggest question mark has to do with the significance of the golden share, as opposed to the details. Depending on the attitude of the administration in power in Washington, the unusual arrangement could be “non-consequential,” Lundin observes, “or it could entirely change the trajectory of how U.S. Steel operates at specific decision points that are crucial to its growth or survival in the future.” Nippon Steel has, in effect, made a multi-billion-dollar bet that “their internal decision-making will be in alignment with whatever the US government thinks at some undetermined point down the line.”

Will the new owner’s strategic plans change? If so, how accommodating will a future administration decide to be? The next chapter in U.S. Steel’s 124-year saga has now begun.

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I tried 3 hacks to stop my bins from smelling – a £1.50 trick made a total mess but a 55p buy was a total game changer

IF your bins are kicking up a nasty smell, fear not, you’ve come to the right place.

With summer right around the corner, the warm weather can cause your bins to emit ghastly, unwanted odours.

Several green wheelie bins overflowing with black garbage bags on a pavement.

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With the weather heating up, if you’ve noticed your bins kicking up a grim odour, we’ve got you coveredCredit: Getty
Woman with long red hair smiling for the camera.

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Here, Abby Wilson tests out three hacks to not only clean her bin, but to banish nasty smells tooCredit: Abigail Wilson
Photo of Tesco Thick Bleach, Star Drops Pink Stuff, and Fairy Max Power Eucalyptus antibacterial dish soap.

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One trick made a total mess, but another left Abby’s bin sparklingCredit: Supplied
Black recycling bin with a blue lid.

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Her bin was quite grubby at firstCredit: Supplied

But to stop your dirty recycling from marinating in the heat and causing your neighbours to squirm, experts have revealed a variety of simple tips and tricks to keep your bins fresh all summer long.

According to Michael Bogoyavlenskiy, CEO of Cleaning Express, keeping your bins out of direct sunlight can help prevent foul smells.

And while it’s important to empty your bin every couple of days and make sure to dispose of anything “particularly pungent”, there’s also a variety of cleaning hacks that can banish grim smells.

On a mission to ensure my recycling bin smells fresh this season, I, Abby Wilson, tested three simple hacks

Read more Fabulous stories

You probably already have at least two of these buys in your cupboards already, but don’t worry if your purse is feeling tighter than ever before, as all three are super affordable.

While the cheapest hack will cost you just 49p, your bin will be so clean you’ll be able to see your reflection thanks to a 55p trick. 

Wash this 

According to those at Busy Bins, a simple mixture of washing-up liquid and warm water will do the trick to banish seriously bad stenches from your bin.

Bottle of lemon-scented dishwashing liquid.

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Washing-up liquid got rid of strong smells, but needed a bit of elbow greaseCredit: Getty

So, I got my Marigolds on and dived headfirst into the bin – and yes, it was as grim as you could imagine.

In between holding back gags and wiping my watering eyes, I scrubbed the interior of the recycling bin with the purse-friendly two-ingredient solution. 

I then gave the bin a quick rinse with a hose and I have to say, it looked pretty good.

Top 6 spring cleaning hacks

Whilst it wasn’t great at getting rid of the tough stains and did require quite a bit of elbow grease (far more than I’d have hoped), it definitely cut through the strong smells.

It looked pretty good too and thanks to this cheap trick, your bins are sure to shine in no time.

While I used proper Fairy Liquid, if you’re on a budget and are looking to pocket pennies where possible, you’ll be thrilled to know that you can nab cheaper dish soap from just 49p from Savers.

Rating: 3/5 

Powerful paste 

After a couple of weeks, it appeared that my bin had gone back to its old ways and was still looking a bit grim.

Tub of The Pink Stuff cleaning paste.

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The Pink Stuff made a proper messCredit: www.bmstores.co.uk

So I searched for something a bit stronger and bought myself a tub of The Pink Stuff, which you’ll find for only £1.50 from Poundland, Sainsbury’s and Dunelm

While this isn’t something I’ve heard many experts talk about when it comes to bin cleaning, I figured the multi-purpose paste which has been hailed as a “miracle” product that is said to be “tough on stains”, could do the trick.

But after literally five seconds of scrubbing, I was already starting to regret my decision.

Yes, this thick paste is super versatile, but it made a total mess on my bin.

The household items you’re not cleaning often enough

IF you want to ensure your home is squeaky clean, you’ll need to listen up. Below are the household items you’re forgetting to clean, and how to get them sparkling…

Remote Controls: Wipe with a disinfectant cloth. Use a cotton bud for crevices.

Light Switches: Wipe with a disinfectant wipe. Use a mild soap solution for tough stains.

Door Handles: Clean with an antibacterial spray. Wipe down regularly.

Underneath and Behind Appliances: Vacuum or sweep regularly. Mop with a suitable cleaner.

Shower Curtains and Liners: Wash in the washing machine. Use a bleach solution for stubborn mildew.

Kitchen Sponges and Dishcloths: Microwave damp sponges for one minute. Wash dishcloths in the washing machine.

Computer Keyboards and Mice: Use compressed air to remove debris. Wipe with a disinfectant wipe.

It was much more hassle than it was worth and there was far too much faff involved with getting rid of the white residue from my bin.

While I love using this product throughout my home, on my grubby oven and kitchen sink, I’m definitely not sold on using it to clean my bin.

Also, the scent is very faint, so it didn’t work as well as I’d hoped to keep my bin smelling fresh. 

Rating: 2/5 

Seriously strong 

Disappointed with the mess The Pink Stuff made, not only on my bin but all over me too, I reached for a household hero I knew wouldn’t let me down.

A white plastic jug of bleach.

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Bleach took the top spot on this cleaning testCredit: Getty

Not only do I use bleach on my loos, but I imagined it would work well on my bin too.

According to the Wheelie Bin Cleaning Service, using bleach, which you can buy for just 55p from Tesco, is a great way to effectively disinfect a bin.

By bin was left so clean I could even see my reflection in it

Abby Wilson

The pros explained that bleach is a “strong cleaner” that “kills many bacteria, viruses, and fungi”, whilst working to “keep bins clean and fresh.”

Not only this, but the experts also recognised that it will “break down tough stains, grease and grime in bins”, whilst also “making bins look new and clean again.”

Eager to let the powerful product do its work, I diluted some bleach with water and threw the solution over the inside and outside of my recycling bin.

I then grabbed a long brush to spread the solution and left it to work for a few minutes.

Moments later, I thoroughly rinsed the bin to get rid of any residue, which is highly important when using bleach as it can be harmful to the environment and wildlife

As someone who would buy a bleach scented candle if it was available, I was overjoyed with the squeaky clean scent it left behind. 

Cleaning hacks for outside

IF you want to get your garden summer ready, you’ll need to check this out.

ALGAE: If your fence is covered in stubborn algae, Mrs Hinch fans swore by white vinegar to get it looking brand new.

MOSS: If moss is causing you problems, soda crystals will do just the trick.

PATIO: IF your patio slabs have seen better days, bleach could be just the thing for you.

Not only was it a cheap cleaning solution, but it definitely smelt the best out of the bunch too. 

But that wasn’t all – my bin was left so clean (definitely the cleanest it has EVER looked), I could even see my reflection in it – yes, you heard that correctly.

I highly doubt I’ll be popping outside and peering at my bin to check that my make-up and hair look decent, but if you really want your bins to shine, bleach may just be the thing for you. 

Although it left me very impressed, the experts recommend that bleach should not be used for routine cleaning of bins due to environmental concerns and the damage it can do to plastic over time. 

I’ll definitely do this trick again, but for those eager to give it a try, make sure you switch up your cleaning methods, dilute it properly before us and always wear gloves. 

Rating: 4/5 

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Black recycling bin with a blue lid.

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Now, her bin is super shinyCredit: Supplied

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