The surge in significant contracts within the artificial intelligence (AI) and high-performance computing (HPC) sectors persists, with OpenAI leading the way by agreeing to purchase chips worth tens of billions of dollars from Advanced Micro Devices (AMD).
As reported by the Financial Times, this agreement might also enable OpenAI to secure up to a 10% equity stake in AMD over time. Currently, AMD’s stock has spiked approximately 30%, now trading around $225.
The chips acquired through this deal will contribute a total computing power capacity of 6 gigawatts (GW). According to the article, OpenAI executives estimate that developing 1 GW of capacity could cost about $50 billion, considering the chips and required supporting infrastructure.
Consequently, shares of AI and HPC-related miners tend to rally following these large-scale agreements and infrastructure developments.
In Monday’s U.S. market opening: Bitfarms (BITF) increased by 8%, IREN (IREN) surged 12% to reach all-time highs around $56, Hive Digital (HIVE) advanced by 12%, Cipher Mining (CIFR) rose by 7%, CleanSpark (CLSK) gained 5%, and TerraWulf (WULF) also saw a 5% increase.
Galaxy Expanding into AI/HPC
Galaxy Digital (GLXY) has positioned itself as a key player in the swift re-evaluation occurring in the AI and HPC infrastructure space, having transformed its Helios campus into a large-scale AI/HPC data center.
In August, the company obtained $1.4 billion in project financing to upgrade the facility and finalized a long-term lease with CoreWeave (CRWV) for up to 800 MW of computing capacity.
On Monday, its shares also rose by 5% following the AMD news, combined with the company’s unveiling of GalaxyOne, a new wealth management platform that offers a 4% yield on FDIC-insured cash and facilitates seamless auto-investment into crypto and U.S. equities.
As of now, GLXY shares have surged 116% year-to-date.