MacKenzie Sigalos, CNBC:

OpenAI and Advanced Micro Devices have reached a deal that could see Sam Altman’s company take a 10% stake in the chipmaker. AMD stock skyrocketed more than 30% on Monday following the news.

OpenAI will deploy 6 gigawatts of AMD’s Instinct graphics processing units over multiple years and across multiple generations of hardware, the companies said Monday. It will kick off with an initial 1-gigawatt rollout of chips in the second half of 2026.

It only happens once a decade or so, but the most exciting times in tech occur when there’s a breakthrough that’s severely hardware constrained. That includes hardware like infrastructure — bandwidth was a massive constraint during the dot-com boom. It wasn’t even feasible to download audio, like podcasts, for the first decade of the consumer internet boom, let alone video. But it was inevitable that we’d get there.

Right now we’re severely constrained on compute for AI. In a few years, we’ll look back on today’s state of affairs the way we look back on dial-up modems.