AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
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Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#2Infinite money glitch
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#3I wonder what we will do with all that compute if no one is going to use it...even if we achieve AGI it won't run on this generation of hardware. Are we just gonna brute force architectures or wtf is going on?
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#4they're just printing money for each other at this point
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#5Great: once the bubble pops, all camps will suffer.
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#6The bubble pops when Apple releases an iPhone that runs a good enough for most things LLM locally. At that point cloud hardware investments will plateau (unless some new GPU melting use case comes out). Investors will move from nvidia, AMD into Apple.
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#7I wonder what we will do with all that compute if no one is going to use it...even if we achieve AGI it won't run on this generation of hardware. Are we just gonna brute force architectures or wtf is going on?
Cheap cloud gaming.
Those GPU's will finally push pixels again :)
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#8> As part of the arrangement, AMD issued a warrant that gives OpenAI the ability to buy up to 160 million shares of AMD for 1 cent each over the course of the chips deal. The warrant vests in tranches based on milestones that the two companies have agreed on.
This is money printing, just in the private sector. We know what happens when governments do it, and it's not good.
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#9they're just printing money for each other at this point
Some refer to it as "circular financing".
It's "seller financing" but to a degree we've never seen before in an industry (which create these "circular" effects).
There's a good HN thread from 2-days ago on this subject (200+ comments).
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#10The title didn't make this obvious (at least not to me) but it's OpenAI that has the option to buy 10% of AMD. Not the other way around.
In case you're wondering how OpenAI could afford to buy 10% of AMD while they are hemorrhaging money -- the terms of the deal allows OpenAI to buy 160 million shares at 1 cents a share.
I could be thinking about this the wrong way but it appears that AMD is basically subsidizing the cost of the GPUs with equity.