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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

#341

Post by baobabKoodaa »

Havoc wrote: post #308
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

Sounds like you are talking about AGI or superintelligence or something? Because productive AI tools are already here and have been for a few years. AI has already "worked out". Nothing speculative about that.

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

#342

Post by lelanthran »

SecretDreams wrote: post #112
lelanthran wrote: post #70

Earlier quoted context omitted.

It's only fantastic news if there is no bubble. If there is a bubble, AMD just gave away $160m for nothing in return.

> AMD just gave away $160m for nothing in return. Where'd you get this number? The equity is worth closer to 34bil if fully realized?

My

> If there is a bubble,

and your

> if fully realized

Can both be correct at the same time.

IF this is a bubble, then, yes, AMD gave away a lot of money.

OTOH, IF things turn out exactly perfectly, then AMD just got a discount on a 34b purchase.

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

#343

Post by lelanthran »

dist-epoch wrote: post #88
lelanthran wrote: post #70

Earlier quoted context omitted.

It's only fantastic news if there is no bubble. If there is a bubble, AMD just gave away $160m for nothing in return.

Nothing in return? AMD stock is up 30% today on this news.

> Nothing in return? AMD stock is up 30% today on this news.

Companies don't actually get any money when their stock goes up. Maybe AMD owns a lot of their own stock and can sell it off to see a gain, but the stock simply rising doesn't contribute anything to AMD.

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

#344

Post by specproc »

phkahler wrote: post #320
wmf wrote: post #282

Earlier quoted context omitted.

if OpenAI don't find a profitable use for them then both their stock price, and AMD's will go down. Nah, nothing in the current market is based on fundamentals.

>> Nah, nothing in the current market is based on fundamentals. Sure it is. Stock prices are based on supply and demand. Oh, did you mean company fundamentals? Hmm. BTW that demand is all coming from 401k contributions. The powers that be are terrified of a downturn causing too many job losses tanking the whole thing.

It's gotta happen though, right? Pretty much guaranteed. What's the event that precipitates it?

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

#345

Post by specproc »

plorg wrote: post #324
JumpinJack_Cash wrote: post #301

Earlier quoted context omitted.

> > 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…

Imagine if the answer to the Fermi paradox ends up being not "they destroyed themselves through war" but "they destroyed themselves trying to find meaning in money and fake thinking machines".

Massive crashes often precede massive wars.

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

#346

Post by archerx »

manquer wrote: post #238
andrewstuart wrote: post #54

Earlier quoted context omitted.

“He’s my cuz so I’ll let him win the biggest business battle there is.” I dunno, doesn’t have the ring if credibility to it.

Don’t know how it is with them, but can totally see it in an Asian family lol, especially with the added male/female dimension .

Yea, they have very naive views of collusion and nepotism. just because they can’t conceive of it happening means it can’t happen which is quite naive.

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

#347

Post by archerx »

andrewstuart wrote: post #54
archerx wrote: post #47

Earlier quoted context omitted.

>AMD just doesn’t know how to compete with Nvidia. They know exactly how to compete with Nvidia but choose not too. >But Lisa Su can’t bring herself to compete. Because she is colluding with her cousin Jensen.

“He’s my cuz so I’ll let him win the biggest business battle there is.” I dunno, doesn’t have the ring if credibility to it.

Great argument bro.

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

#348

Post by Havoc »

baobabKoodaa wrote: post #341
Havoc wrote: post #308

Earlier quoted context omitted.

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

Sounds like you are talking about AGI or superintelligence or something? Because productive AI tools are already here and have been for a few years. AI has already "worked out". Nothing speculative about that.

> AI has already "worked out".

Not commercially to an extent that supports the massive infra buildout

A couple of neat productivity tricks don’t pay for a 500 billion stargate rollout

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

#349

Post by Incipient »

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.

...I kinda like GH Copilot. Only does something when I ask, and leaves me in my traditional IDE.

...i just wish the code it generated was decent.

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

#350

Post by osn9363739 »

mmmBacon wrote: post #313
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 am personally paying $200/month for the ChatGPT pro version. It’s the best investment I’ve made in my career in a long time. It’s like having 2-3 direct reports. The alternatives provided by my companies are too slow and aren’t anywhere as good. If people start using it anywhere near how I’m using it, there will be profound changes to the workplace in the coming 3 years.

I have a senior that talks like this. Does everything through AI now. Barely writes anything himself. Has 5x'd his productivity. Like having his own team. Thing is his work is awful. The people who review his PRs have to spend 5x the time looking at his work. He's been pushed off to another team thank god. Not saying there aren't advantages and uses for AI. but if what you are saying were true (like having 2-3 reports) and it was a great benefit, there would be way more examples out there I could look at.
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