AMD stock continues rally after OpenAI deal, now up 43% this week so far

AMD stock climbed 11% on Wednesday, continuing a massive run since OpenAI announced plans to buy billions of dollars of AI equipment from the chipmaker earlier this week.

On Monday, the ChatGPT maker entered into an agreement to potentially own 10% of AMD, based on its stock price and partnership milestones.

AMD now has a market cap of $380 billion after climbing 4% on Tuesday and 24% on Monday. Shares are up 43% so far this week, on pace for the best weekly gain since April 2016.

The partnership with OpenAI, which has historically been closely linked with Nvidia, has bolstered investor confidence that AMD will be a viable competitor to Nvidia in AI chips.

AMD CEO Lisa Su told reporters on Monday that the deal was a "win-win" and that its AI chips were good enough to be used in "at-scale deployments," or very large data centers like the kind OpenAI and cloud providers build.

Nvidia CEO Jensen Huang on Wednesday reacted to the deal on CNBC's Squawk Box, saying it was "surprising."

"It's imaginative, it's unique and surprising, considering they were so excited about their next-generation product," Huang said. "I'm surprised that they would give away 10% of the company before they even built it. And so anyhow, it's clever, I guess."