This industry is the most intense game of musical chairs I've seen in a long time.
AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
51–60 of 390 posts
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#52Feels like we're living through a Michael Lewis book.
OpenAI estimate that it takes around $50bn to stand up a 1GW datacenter. This deal is 6GW worth of chips. Their projected revenues out to YE-2029 are $300bn. OpenAI will spend a decades worth of revenues building & filling the datacenters to house these chips, before accounting for their AI research, training, or inference spend.
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#53Earlier quoted context omitted.
Cheap cloud gaming. Those GPU's will finally push pixels again :)
Cloud gaming sucks due to latency, not price.
Cloud gaming can have lower latency than local consoles. https://www.eurogamer.net/digitalfoundry-2022-geforce-now-rt...
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#54It’s quite a good strategy to counteract the prevailing sense that “No one ever got fired for buying Nvidia GPUs”. AMD just doesn’t know how to compete with Nvidia. The best it can do is charge 10% less and release GPUs about the same level of underwhelming performance as Nvidia. Maybe they wouldn’t need to sell equity if they made better faster cheaper products than Nvidia. But Lisa Su can’t bring herself to compete…
>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.
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#55OpenAI now has an option to buy 10% of AMD for $0.01 per share, subject to certain milestones.
Basically, AMD is giving up equity to buy its way into the AI market.
It's fantastic news, because OpenAI and AMD will now work together to develop decent software libraries for AI on AMD chips.
We all want an alternative to Nvidia and cuda. This partnership could deliver it in the not too distant future.
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#56It’s quite a good strategy to counteract the prevailing sense that “No one ever got fired for buying Nvidia GPUs”. AMD just doesn’t know how to compete with Nvidia. The best it can do is charge 10% less and release GPUs about the same level of underwhelming performance as Nvidia. Maybe they wouldn’t need to sell equity if they made better faster cheaper products than Nvidia. But Lisa Su can’t bring herself to compete…
> But Lisa Su can’t bring herself to compete. Which is very strange because she brutally competed with and destroyed Intel. Maybe making cutting-edge GPUs is actually quite an engineering challenge, and not entirely down to the competitive will of the CEO?
AMD already make GPUs that are competitive with Nvidia at every tier except the very top end.
It’s the positioning and pricing that isn’t competitive.
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#57OpenAI now has an option to buy 10% of AMD for $0.01 per share, subject to certain milestones. Basically, AMD is giving up equity to buy its way into the AI market. It's fantastic news , because OpenAI and AMD will now work together to develop decent software libraries for AI on AMD chips. We all want an alternative to Nvidia and cuda. This partnership could deliver it in the not too distant future.
My understanding from the more hardware savvy friends I have is that AMD is better for inference (so when you run a model) vs for training Nvidia is still king. Would be interesting if OpenAI does in fact take AMD's offer and how they use it (if they even share openly).
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#58The 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…
Lol and I had to pay >$60 a share for my little bundle of AMD!
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#59It’s quite a good strategy to counteract the prevailing sense that “No one ever got fired for buying Nvidia GPUs”. AMD just doesn’t know how to compete with Nvidia. The best it can do is charge 10% less and release GPUs about the same level of underwhelming performance as Nvidia. Maybe they wouldn’t need to sell equity if they made better faster cheaper products than Nvidia. But Lisa Su can’t bring herself to compete…
> and release GPUs about the same level of underwhelming performance as Nvidia.
What's the standard that they're underwhelming relative to? I thought Nvidia was the current big fish there.
Re: AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
#60> 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.
I'm very ignorant, will AMD shares get diluted? or how is it money printing?
It isn’t printing money (money supply was not increased, and no one has access to more money due to the contract signed between the two parties), but I assume it makes the poster feel good to be outraged and express it by writing something like that.