OpenAI Partners with Cerebras in $10 Billion AI Chip Deal Amidst Expanding Partnerships
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Should l Buy AMD?
Source: Newsfilter
- Major Partnership Agreement: OpenAI has signed a deal worth over $10 billion with Cerebras to deploy 750 megawatts of AI chips by 2028, significantly enhancing its AI processing capabilities and solidifying its leadership in the AI market.
- Comprehensive Investment Strategy: In 2025, OpenAI inked infrastructure agreements exceeding $1.4 trillion with Nvidia, AMD, and Broadcom, reflecting its strong anticipation of AI technology demand, which is expected to drive the company's valuation to $500 billion.
- Technological Innovation and Market Competition: Cerebras' chips can deliver responses up to 15 times faster than GPU systems, providing OpenAI with a technological edge in the increasingly competitive AI landscape, particularly against giants like Nvidia.
- Future Collaboration Potential: OpenAI's $38 billion cloud deal with Amazon indicates a diversification strategy in AI infrastructure, with potential plans to leverage Amazon's AI chips, further enhancing its competitive position in the market.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 210.210
Low
210.00
Averages
289.13
High
377.00
Current: 210.210
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Surge: Following this announcement, shares of Sakura Internet surged by 20.2% on Friday, reflecting market optimism regarding the partnership's potential and likely boosting the performance of related companies in the sector.
- Strategic Partnerships: Microsoft will collaborate with Sakura Internet and SoftBank to provide AI computing resources, including graphics processing units located in Japan, which will not only support the development of domestic large language models but also enhance Japan's competitiveness in the global AI landscape.
- Talent Development Initiative: Microsoft plans to partner with five major Japanese IT companies, including NTT Data, NEC, Fujitsu, and Hitachi, to train 1 million AI professionals by 2030, aiming to meet the growing demand for cloud and AI services in Japan and further solidify its market position.
See More
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- Positive Market Reaction: This transaction drove Intel's stock price up 4.89% to $50.38, with trading volume reaching 116.1 million shares, 8.6% above the three-month average, reflecting investor confidence in the company's turnaround.
- Enhanced Capacity Control: By regaining full ownership of Fab 34, Intel can better meet the demands of AI and data centers, although the scale of this investment highlights the capital pressure required to compete in advanced chip manufacturing.
- Analyst Support Continues: Analysts have reiterated their support for Intel's turnaround, believing that ongoing AI and data center demand will drive utilization of its manufacturing network, with investors looking forward to upcoming quarterly results to confirm profitability improvements from increased demand.
See More
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- Stake Repurchase: Intel has agreed to repurchase Apollo's 49% stake in its Fab 34 facility for $14.2 billion, restoring full ownership of the Ireland-based plant and enhancing its competitive edge in advanced chip manufacturing, particularly amid rising AI and data center demands.
- Positive Stock Reaction: This news propelled Intel's stock price up by 4.89% to $50.38, with trading volume reaching 116.1 million shares, which is 8.6% above the three-month average, indicating strong investor confidence in the company's turnaround strategy.
- Optimistic Market Outlook: Analysts have reiterated their support for Intel's turnaround, suggesting that ongoing demand for AI and data centers will drive higher utilization of its manufacturing network, making upcoming quarterly results crucial for assessing profitability improvements.
- Investment Risks and Opportunities: While regaining full ownership of Fab 34 increases potential upside, it also introduces execution risks, particularly concerning margins and returns on large capital projects, prompting investors to closely monitor the forthcoming earnings report.
See More
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- Data Center Business Performance: AMD's data center segment generated $16.6 billion in revenue last year, a 32% increase, and partnerships with top hyperscalers are expected to further drive healthy growth in this area, showcasing the company's competitive edge in the AI market.
- Apple Market Share: Despite lagging behind competitors in AI, Apple became the largest smartphone vendor in Q4 2025 with a 24.2% market share, shipping 81.3 million iPhones, reflecting its strong performance in the overall market.
- AI Software Opportunities: Apple's growth potential in AI lies primarily in software, as management noted enterprises are using its AI-enabled devices to enhance productivity, with future monetization likely through paid subscription models, further solidifying its market position.
See More
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- Strong Data Center Business: AMD's data center segment generated $16.6 billion in revenue last year, a 32% increase, with 80% usage of its Instinct processors among the top ten AI companies, indicating the company's growing competitiveness in the hyperscale data center market.
- Apple's Market Leadership: Apple held a 24.2% market share in the smartphone sector in Q4 2025, shipping 81.3 million iPhones, with annual shipments totaling 247.8 million, a 6.3% increase, demonstrating its strong market position despite perceived lag in AI capabilities compared to rivals.
- AI Software Monetization Opportunities: With over 2.5 billion active devices, Apple management noted that enterprises are leveraging its AI-enabled devices for productivity improvements, suggesting potential monetization through paid subscriptions for advanced AI features, which could further drive company growth.
See More
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- Substantial Order Backlog: Oracle's remaining performance obligations (RPO) reached $553 billion, a staggering 325% increase year-over-year, indicating strong market demand; however, $300 billion of this is tied to high-risk clients like OpenAI, potentially jeopardizing cash flow stability.
- Uncertain Market Environment: While Oracle's P/E ratio of 25.1 is lower than the Nasdaq-100's 29.9, suggesting its stock may be undervalued, the high debt and customer reliance make it prudent for investors to exercise caution amid market instability.
See More
