The deal allows OpenAI to purchase up to 6GW of AMD GPUs, while AMD grants OpenAI warrants for up to 10% equity tied to performance milestones, creating a closed-loop of compute, equity, and potential self-funding hardware purchases. Circular.
From the announcement per se, AMD's stock rose to a level that effectively canceled out whatever liabilities they were committing to as part of the deal, so it was all gravy, despite it being a press release
Why is that generous? This is clearly showing OpenAI's belief in AMD, which in turn would give investors a large amount of confidence. A lot of that market cap came from Nvidia, which lost around 50B that day while AMD gained 70B in market cap. It all makes sense to me.
Where do you see the 70B being erased? But in any case it is also plausible that a confidence changes given new stream of constant information, so I don't see how it would be problematic if it did lose given new information.
The deal allows OpenAI to purchase up to 6GW of AMD GPUs, while AMD grants OpenAI warrants for up to 10% equity tied to performance milestones, creating a closed-loop of compute, equity, and potential self-funding hardware purchases. Circular.
From the announcement per se, AMD's stock rose to a level that effectively canceled out whatever liabilities they were committing to as part of the deal, so it was all gravy, despite it being a press release