AMD has granted OpenAI a boatload of stock warrants — up to 160 million AMD shares — which will vest in tranches as certain milestones are achieved. Those milestones include specific increases in the stock price, with the last tranche dependent on AMD shares soaring to $600 apiece, AMD disclosed. They were trading at about $165 before the news hit and soared to $214 by market close Monday after the announcement.
If the stock price hits its marks, and OpenAI achieves all its required contributions, and OpenAI holds all of AMD’s shares, not selling any along the way, OpenAI may make enough on AMD stock to pay for a lot of GPUs. The stock could be worth about $100 billion.
“We would note that the final 6th tranche requires ~$1T market cap to vest – ergo, if OAI were to hold stock until the end of the deal, its stake would be worth ~$100B,” writes UBS analyst Timothy Arcuri in a research note on Tuesday.
But Arcuri believes that a more likely scenario is that OpenAI will sell its AMD stock along the way to pay its AMD bill. So, essentially, this is a scheme for AMD to finance this customer’s purchases.
It would be fun to watch if it wouldn’t be (as always) the working class that’s going to pay when the bubble bursts. Be it austerity measures, buyouts of “too big to fail” companies with tax money of people actually paying taxes (so not the rich) or whatever else. The people playing the bubble now won’t be affected by the burst. The rich get even richer in crisis.
There is a saying in Hungary, “a Hungarian cries in celebration”. It roughly means that you have to keep being able to laugh at life’s absurdities because they come more often than happily ever afters.
I mean one the one hand you’re absolutely right, but on the other hand you need to look at these idiots as they are in their pathetic and laughable selves. I’m not saying the situation is funny, it couldn’t be more serious, I’m saying the fact that the supposed “elite” of the “home of innovation”, Silicon Valley, came together and the best thing that they could do to make up a new groundbreaking idea to transform the economy was…
…a chatbot that can confidently lie.
I’m not laughing at the people losing their jobs, my heart goes out to them, I’m laughing at Jeff Bezos and Elon Musk who have the imagination and the ability that they are demonstrating right now. They deserve to be ridiculed and laughed at.