AMD Soars on OpenAI Partnership: AMD CEO and OpenAI Co-Founder & President "First on CNBC" 10/06/25

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Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street. Good Monday morning.

Carl Quintanilla (1:07)

Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post 9 of the New York Stock Exchange. Faber has the morning off. More all-time highs are in sight. On a morning bursting with news, AI deals, bank M&A, CEO succession, and a government shutdown now in day six. Tenure yields back up to 416 We're going to begin though this morning with today's big development in the world of AI. Shares of AMD surging in the pre-market, the chip maker and OpenAI announcing a multi-year partnership. The agreement calls for the maker of ChatGPT to purchase six gigawatts of AMD's Instinct GPUs with a one gigawatt deployment to begin in the second half of next year. OpenAI will receive a warrant for up to 160 million AMD shares which could result in 10% ownership in the chip maker if it's fully exercised. We're going to talk to AMD's CEO Lisa Su and OpenAI co-founder and President Greg Brockman later on this hour, Jim. This is a very big deal on a month. We've seen deal after deal.

Jim Cramer (2:04)

Absolutely. Look, I think this is a verification of the total addressable market. I think it's also a verification that when Jensen Wong went on Brad Gershner's excellent podcast, he talked about how there is no quid pro quo. They can take that money to whoever they want. Well, they did. They went with the competitors. Also says that, and we'll get to talk with Lisa Su, that her MI450 may be equal or superior, I think she'll say, to the current version of NVIDIA. We got to find out. Then I also want to say to people that if you watch that interview with Sam Altman and John Ford and this gentleman we're going to be interviewing, you really didn't come back with, this is the closest relationship imaginable. And now we know that that's not. And why do they have to do it? I think it's because there is such a big market, they feel like they have to, they don't want to lose out to others. You know, and Carl, I think that the skeptics are going to be there and they're going to say, look, they don't have the money. I will come back and say the skeptics were saying, you know what, last week, they made this, NVIDIA made a sweetheart deal, a circular deal, a lazy Susan deal, they give them money and then they get it back. Well, that was totally wrong. And I urged the skeptics to rethink how skeptical they should be. I think this is all real.

Carl Quintanilla (3:22)

We were joking, Santoli and I in the corner, there's not a lot of skepticism on AMD shares right now.

Jim Cramer (3:27)

No, there shouldn't be because a lot of people, except for Lisa Su, were saying, look, they're not competitive, they're not competitive. And when you got with Lisa off the desk, she would tell you, look, our next generation is equal, if not better. I want to hear from Jensen. Obviously, I'm not going to make a judgment myself. What do I know about the MI450 and how strong it is? But it obviously means something.

Carl Quintanilla (3:50)

It might make some sense that Nvidia and Broadcom too are lower pre-market.