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Advanced Micro Devices (NASDAQ:AMD) just scored a huge win with a $10 billion, multi-year deal to power Saudi Arabia's new HUMAIN AI hub with 500 megawatts of its chips and accelerators. Investors cheered, sending AMD shares up nearly 4% as they realized how much revenue could flow from building out that kind of GPU-heavy infrastructure.
Lisa Su says the partnership advances global AI infrastructure by marrying AMD's open-architecture gear with HUMAIN's local ecosystem, while HUMAIN's CEO Tareq Amin calls it democratizing AI at the compute levelbasically putting next-gen performance in more hands. And this follows HUMAIN's own $5 billion AWS tie-up from earlier on Tuesday, showing Saudi Arabia's serious push to localize cloud and AI services.
Why it matters: That $10 billion commitment bulks up AMD's data-center backlog and highlights how tech geopolitics are reshaping growth opportunities.
Keep an eye on AMD's next earnings callinvestors will want to know how soon this deal starts padding the top line and what it means for profit margins as all that horsepower goes live.
This article first appeared on GuruFocus.