AMD Inks Chip Deal With OpenAI That Triggers Explosive Rally (2)

Advanced Micro Devices Inc. landed a blockbuster deal with OpenAI to build artificial intelligence infrastructure, giving the chipmaker a chance to show it can mount a challenge to Nvidia Corp. in the AI computing industry.

AMD shares soared 24% to $203.71 after the agreement was announced Monday, adding $63.4 billion to the company’s market valuation. It’s now worth $330.6 billion, more than Coca-Cola Co., General Electric Co. or Chevron Corp. Shares continued to rise early Tuesday, jumping 4% in premarket trading.

OpenAI will deploy 6 gigawatts’ worth of AMD graphics processing units over multiple years, according to the pact, which ...