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AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake

reuters.com

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Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake

#301

Post by JumpinJack_Cash »

fancyfredbot wrote: post #260

This $100bn deal didn't cost anything and isn't worth anything. Remember back two weeks ago when Nvidia gave OpenAI $100bn so they can keep buying Nvidia GPUs? This is AMD trying to do the same, but they don't have $100bn so they are offering OpenAI share options to buy GPUs. The share options will be worth at least $100bn too, if the conditions are met. But meeting the conditions will require buying huge numbers of…

> > Infact if OpenAI don't find a profitable use for them then both their stock price, and AMD's will go down.

In theory yes but OpenAI doesn't have a stock and in the word of AntiChrist Peter Thiel : "We only have AI, there is nothing else out there except for AI" so with the belief still strong to carry at least up until GPT 7 OpenAI will find ways to present itself to the world as capable of putting to use the AMD GPUs and AMD will benefit from it.

And honestly the anti Christ is right. Vibe coding is already bigger than self driving cars, the metaverse and all that stuff that emerged during covid

Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake

#302

Post by trenchpilgrim »

threecheese wrote: post #300
joenot443 wrote: post #297

Earlier quoted context omitted.

Fully anecdotal, but nearly every knowledge worker I know has Copilot or ChatGPT or some kind of corporate LLM subscription included in their job now. I don’t think the majority use it very well, but I know at least a handful who do. Corporate America seems ready to spend real money on AI, at least for now. This money being spent today doesn’t come close to recouping the investment OpenAI et al have made, but the tri…

I was told that - with the full complement of good tools for a scrum team- the cost approaches a 6th member of the team. The crap from MS/GH plus a decent agent like Claude/Bedrock. You can squeeze decent behavior from vscode agent if you know what you are doing, but anyone who knows what they are doing wishes they had something better.

That isn't true for our team. It's more like the cost of coffee/tea/energy drinks for our team.

Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake

#303

Post by alienthrowaway »

joenot443 wrote: post #297
coliveira wrote: post #288

Earlier quoted context omitted.

It seems that these American companies have decided, with the government blessing, to form a cartel to split the imaginary money they assume will exist for AI technologies. This is an extremely disturbing notion that will only increase the combined power of these tech companies over our daily lives, but may also spell the doom of the economy in a not-so-distant future.

Fully anecdotal, but nearly every knowledge worker I know has Copilot or ChatGPT or some kind of corporate LLM subscription included in their job now. I don’t think the majority use it very well, but I know at least a handful who do. Corporate America seems ready to spend real money on AI, at least for now. This money being spent today doesn’t come close to recouping the investment OpenAI et al have made, but the tri…

Back in the dotcom boom years, Internet adoption growth was real - with a lot of people and businesses paying real money to get online. And yet, the dotcom bust happened. The existence of paying customers adopting a technology does not assure the sustainability of the industry at any point in time.

Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake

#304

Post by barchar »

pixl97 wrote: post #141
Havoc wrote: post #108

Earlier quoted context omitted.

> Obviously, for the stock price to go up money needs to come from somewhere. Not convinced that’s true anymore in current climate. Bigger numbers announcements and AI Pixie dust works too apparently lol

I mean the potential value comes from the future either way. If you just print money and nothing else, it inflates and becomes worthless affecting all involved. If the money turns into technical progress or products then the entire economy grows.

The money actually has to be spent on real goods for which supply is inelastic for this to happen. If it's instead saved or used to pay taxes it won't cause any inflation.

I suppose the increased savings means there more potential for the private sector to cause inflation if everyone decides to dissave at once, but that's sorta a last resort.

Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake

#306

Post by didntknowyou »

fancyfredbot wrote: post #260

This $100bn deal didn't cost anything and isn't worth anything. Remember back two weeks ago when Nvidia gave OpenAI $100bn so they can keep buying Nvidia GPUs? This is AMD trying to do the same, but they don't have $100bn so they are offering OpenAI share options to buy GPUs. The share options will be worth at least $100bn too, if the conditions are met. But meeting the conditions will require buying huge numbers of…

it kinda worked in a way. AMD offered OpenAI 160 million stock options.

With AMD's stock jump today it's net worth increased about $35billion, close enough in value to those stocks option they gave away (if it was redeemed instantly).

It's too much of a coincidence so I'm guessing market makers and institutional shareholders priced it in their trading today.

Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake

#308

Post by Havoc »

fancyfredbot wrote: post #260

This $100bn deal didn't cost anything and isn't worth anything. Remember back two weeks ago when Nvidia gave OpenAI $100bn so they can keep buying Nvidia GPUs? This is AMD trying to do the same, but they don't have $100bn so they are offering OpenAI share options to buy GPUs. The share options will be worth at least $100bn too, if the conditions are met. But meeting the conditions will require buying huge numbers of…

It's fundamentally a leap of faith that AI will work out. The entirety of OAI is exactly that - a triple bet the farm on AI.

Whether this works out or not no longer depends on the specifics of the deals. This either works big picture or it's all a smoking crater

Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake

#310

Post by puppymaster »

alienthrowaway wrote: post #303
joenot443 wrote: post #297

Earlier quoted context omitted.

Fully anecdotal, but nearly every knowledge worker I know has Copilot or ChatGPT or some kind of corporate LLM subscription included in their job now. I don’t think the majority use it very well, but I know at least a handful who do. Corporate America seems ready to spend real money on AI, at least for now. This money being spent today doesn’t come close to recouping the investment OpenAI et al have made, but the tri…

Back in the dotcom boom years, Internet adoption growth was real - with a lot of people and businesses paying real money to get online. And yet, the dotcom bust happened. The existence of paying customers adopting a technology does not assure the sustainability of the industry at any point in time.

i dont see dotcom technologies replacing droves of workers and creating panics in /r/screenwriters, /r/3dmodelers etc. The displacement is real and we are not going back. Dotcom tech created fake problems so their 'advance technology solution' can be presented as solution. With AI wave, it's the opposite - business heads are actually thinking 'what other real problems can i solve with AI'. OpenAi and Claude don't even have to do any preaching. That's real value.
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