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AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake
- waltercool 1y ago[dead]
- robotswantdata 1y agoInfinite money glitch
- mrweasel 1y ago[dead]
- BoredPositron 1y agoI 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?
- grim_io 1y agoCheap cloud gaming. Those GPU's will finally push pixels again :)
- palmotea 1y ago> Cheap cloud gaming. > Those GPU's will finally push pixels again :) Have they ever? I wonder if, say, an H100 even supports graphics APIs.
- thiago_fm 1y agoH100s have certain tradeoffs that makes gaming not as energy efficient. Funnily enough, H100s are already old hardware, and soon will all get fully depreciated. Billions and billions of depreciated assets!
- krige 1y agoCloud gaming sucks due to latency, not price.
- LogicFailsMe 1y agoWhich is something we already knew a decade ago. Just like we knew self-driving AIs are not reliable. The magical thinking was assuming they would just get better.
- ptsneves 1y agoPlayed forza motorsport 5 on xbox cloud gaming and could not notice it. Of course I am the most non-serious player ever, but I really tried to notice, and for my standards it was fine.
- fkyoureadthedoc 1y agomaybe I'm just over sensitive to it, but I can't even stand playing when the tv isn't on game mode. can't imagine waiting for controller input to make a server roundtrip
- admaiora 1y agoNot even an issue anymore. I have no issue playing FPS games like call of duty multiplayer via GeForce Now and can be decently competitive. I do live close to the servers though.
- TiredOfLife 1y agoCloud gaming can have lower latency than local consoles. https://www.eurogamer.net/digitalfoundry-2022-geforce-now-rtx-3080-review-is-cloud-gaming-finally-a-viable-alternative https://www.eurogamer.net/digitalfoundry-2022-geforce-now-rt...
- Havoc 1y agoThey won’t. High end AI GPUs get stomped by mid tier gaming GPUs on pixels There will definitely be takers though. Can see scientific community for example loving some cheap GPUs
- nharada 1y agoI assume there's at least one generation of re-sale value. There's a lot of smaller companies that could use GPU capacity and would if it was cheaper. I wonder how the math works out though -- are power requirements such that the actual costs aren't worth it? How long before the chips just get thrown away?
- didntknowyou 1y agothey're just printing money for each other at this point
- alberth 1y agoSome 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). https://news.ycombinator.com/item?id=45473033 https://news.ycombinator.com/item?id=45473033
- bee_rider 1y agoWhat a mess. When they have to write about how “circular financing” became highly regulated in the future, I hope they know that the problem was not confusing in the big picture. Maybe I can get quoted in a sidebar: “Hey Econ students, we normal people could see that the AI market was extremely gamed. We can see the investment feedback loop. It is just that the organizations continuing it have control over so much money, they don’t have to stop and ask society in general for permission to continue. Really this is a symptom of the wealth inequality crisis that they covered chapter…”
- tjwebbnorfolk 1y agoThis method of financing is not novel. But anytime you see an unnecessarily complex deal like this, one should think very carefully about why they didn't opt for a simpler method, e.g. simply selling stock in the open market. The reasoning behind such a deal are usually not a good sign for the underlying health of the companies involved.
- famouswaffles 1y agoI'm assuming this is what you mean by 'simply selling stock in the open market' so correct me if I'm wrong but Why would Open AI go public when they can raise so much private money they're valued at 500B ? It certainly wouldn't be for fear of a lack of investment. AMD is up 30% from this announcement alone.
- cluckindan 1y agoGreat: once the bubble pops, all camps will suffer.
- randomname4325 1y agoThe 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.
- aswegs8 1y agoWhat's the advantage of that, exactly? Why would you want something very compute intensive run on your phone instead of just using an API to data centers with great economy of scale?
- randomname4325 1y agoMy assumption is that most users won't actually care if the LLM is in the cloud or device. That said, quite a few folks have iPhones and Apple's only way into the AI race is to go to it's strength, 1B+ hardware devices that they design the silicon for. They will produce a phone that runs a local LLM and market it as private and secure. People upgrade every couple of years (lose or breaks) so this will drive adoption. I'm not saying people will vibe code on their iphones.
- lelanthran 1y agoPrice, for one. I don't mind running a local model at half the speed if all it costs is electricity. A local model basically allows me to experiment with running an agent 24x7, 365 days a year with continuous prompting. SaaS won't be able to match that.
- kcb 1y agoWhat's the benefit to running LLMs locally? Data is already remote, LLM inferencing isn't particularly constrained by Internet latency. So you get worse models, performance, and battery life. Local compute on a power constrained mobile device is required for applications that require low latency or significant data throughput and LLM inferencing is neither.
- fkyoureadthedoc 1y ago
- theli0nheart 1y ago> 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.
- john-h-k 1y agoIt’s quite specifically not money printing, because it’s backed by something. It could be bad sure but it’s not money printing
- theli0nheart 1y agoBacked by what?
- kaptainscarlet 1y agoCompute resources.
- w3ll_w3ll_w3ll 1y agoSo like Bitcoin?
- denismenace 1y agoNot the same, since if you buy Bitcoin, you don't have partial ownership of the machines used to mine and also these machines being used for a singular purpose which you cannot change.
- vel0city 1y agoAnd high end networking gear will always have a buyer, right Nortel?
- nerdix 1y agoThe 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.
- giancarlostoro 1y agoSimilar to how Microsoft bought out nearly half of OpenAI, though they offered compute credits IIRC. I wonder how much into Microsoft's investment OpenAI is in. Edit: Apparently what Microsoft owns is 49% profit-sharing interest in OpenAI, specifically in the 'capped profit' for profit subsidiary. So weird, but hey, it's still a slice of the pie. Plus they can exclusively sell access to the models.
- rvba 1y agoMicrosoft seems to have made a good deal: it got the models AND profits. Also microsoft is pushing copilot to office and I think it will sell. Since they sell to general B2B and not only to the peogrammer niche. AMD is trying to buy market share by donating 10% equity. I also think it is crazy
- giancarlostoro 1y agoYeah, I heard about when ChatGPT removed I think it was O4? apparently there's an entire community devoted to "role playing" or rather dating a character powered by the model. GPT5 broke their entire relationship. Me and a few friends agreed it might have been worth spinning up a dating GPT O4 based service for those people to pay to migrate their AI 'companions' to. Azure still has these "abandoned" models. On the other note, it also helps OpenAI because they don't have to manage setting up all that infrastructure just to let others use the model.
- yousif_123123 1y ago
- Mistletoe 1y agoI feel like I’m reading headlines from 1929. Surely everyone knows how fake and pyramid all these deals are but no one seems to care, they all think they will find a chair when the music stops.
- deleted 1y ago[deleted]
- andrewstuart 1y agoIt’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. Which is very strange because she brutally competed with and destroyed Intel.
- rvba 1y agoAt the end od the day it is not the CEO who invents / designs / builds the stuff. I mean, they could recognize that Nvdidia has better ecosystem and they could provide something similar (CEO's job is to set this), but saying "just make better chips" is kind of funny. I mean, I worked in companies where the CEO couldnt figure this out, but come on. It's AMD.
- findthewords 1y agoI think it's quite obvious why Lisa Su isn't motivated to financially crush her first cousin once removed. AMD is doing quite well in the CPU space and as such isn't even forced to compete in the GPU space. AMD could take market share from Nvidia, but they don't have to, because there is no one else who would take it either.
- andrewstuart 1y agoSo the “we’re so successful, we don’t need any more business, so we’re just cruising”, strategy eh? Doesn’t resonate for me as how most American companies do business.
- fooker 1y ago'American' companies have moved on to Fintech, hedge funds, real estate, and private equity. No big tech company now is run like an 'American' company. Take a look at the C suite and other leadership positions. Yes, AMD was doing that as long as Nvidia was mostly avoiding high performance CPUs. But with The Nvidia-Intel partnership all bets are off, hence you're seeing this deal now.
- JCM9 1y agoThe terms of some of these deals now are so completely bonkers it would be funny if it wasn’t so scary. If someone was writing the script to “The Big Short 2” about the AI bubble they might struggle to come up with some of these things with a straight face. Finance folks are salivating at the once in a generation opportunities ahead when this whole thing crumbles. CNBC seems to have at least one segment a day on “What’s your AI bubble burst play?”
- deleted 1y ago[deleted]
- progx 1y agoMoneyprinter goes Brrrr
- lsaferite 1y agoThose vesting milestones must be steep for them to offer 10% of the company at $0.01/share ($1.6M).
- thiago_fm 1y agoWhen the bubble pops, the US' FTC will need to place limits on those circular deals like this. Literally the whole big tech will melt. There are banks that are backing up certain GPU deals and those will be hit with billion losses as well. Imagine once they have to depreciate those $1T+ of GPUs, data centers and the like that can't even be on resale for gaming. Imagine when economic blocks like the EU and BRICs starts to reject more US software, when so much of those Big Tech revenues are made abroad. The recent geopolitics plays being a key factor. This looks really bad.
- dboreham 1y ago> US' FTC will need to place limits on those circular deals So...after the next election and a bunch of significant US governance reforms.
- itsnowandnever 1y agorobber barons gonna robber baron.
- SecretDreams 1y agoThis industry is the most intense game of musical chairs I've seen in a long time.
- Jlagreen 1y agoAnd you have that right. And now imagine what will happen when OpenAI makes deals with Nvidia and AMD. Do you think Hyperscalers will just watch? I expect Musk to make a $1 trillion deal soon. I guess, that's why he wants to get the $1 trillion from Tesla. And do you think Meta, Amazon, Microsoft and Google will stand by while Altman and Musk are buying future supply from Nvidia and AMD? I love that. As an investor in Nvidia, I hope that these future promises will push the stock 4-5x quickly in Cisco fashion because then I can sell and retire in my 40s with a huge pile of money watching the bubble explosion on some beach on an island :)
- SecretDreams 1y agoTrading any of this, the only question that you need to answer is: What is more painful to you, missing some gains on the way up or holding positions that have flipped from positive to negative very rapidly? Markets like this, the moves will be violent in both directions, not just on the way up.
- Jlagreen 1y agoMy cost base of Nvidia is $1 so for me to lose is that Nvidia gets back to way before COVID valuation. Nvidia is more worth than $1 per share on gaming alone.
- SecretDreams 1y agoTotally fair. If you've got a great cost basis, you can stress less. The question then becomes what feels worse: Watching a position you sold double or watching a position you're holding get cut in half?
- 1y ago
- OtherShrezzing 1y agoFeels 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.
- jcranmer 1y agoDon't forget that OpenAI also has a similarly-massive deal with Oracle and another one with Nvidia. And its own Stargate initiative. And probably a couple more massive contracts with neoclouds to use more stuff. Like best possible scenario is OpenAI merely optioning from literally everybody because they don't think they have a shot at getting any capacity otherwise. There is just no possible way that they can actually afford all of the buildouts. For that matter, there's not even any possible way for all of these buildouts to actually be completed.
- alwahi 1y agoif you buy all the chips, no one else can build agi. sama probably
- TheAlchemist 1y ago"Feels like we're living through a Michael Lewis book." We definitely are ! The BIG question is - what chapter are we in ?
- amir734jj 1y agoSorry, dumb question. Which book? I am curious about the book :)
- OtherShrezzing 1y agoMichael Lewis has written a bunch of books about financial crises and their origins. He wrote The Big Short for example. If you’re into tech & startups, he wrote Going Infinite about FTX, and Flash Boys about high frequency trading.
- cs702 1y agoOpenAI 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.
- giancarlostoro 1y agoMy 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).
- alexeldeib 1y agoLarger memory, weaker comms. You can optimize for this by doing things like increasing batch size/data parallelism vs sharding schemes with more comms. At scale training won’t be able to avoid comms entirely, while many models can fit in a single MI300 for serving.
- cs702 1y agoToday, yes, it's true that AMD hardware can be competitive mainly for inference. The story here is about the future. Over time, OpenAI would benefit if AMD hardware becomes competitive for training too. Nvidia currently gets to charge whatever the market can bear on its dominant training hardware. If AMD hardware becomes a real alternative for training, Nvidia will be forced to compete on price.
- giancarlostoro 1y agoThe reason I think its worth noting is that Inference is definitely what I imagine an insane amount of their computer is / will be spent on. I could see a very optimal setup where training is all Nvidia, but inference becomes reliant on AMD.
- 1y ago
- tanh 1y agoI don't know why Bloomberg TV are asking where this money comes from for OpenAI. It comes from the AMD stock holders. If the AMD stock pumps then OpenAI gets free money to buy more, without giving up equity. If it doesn't then OpenAI just walk away.
- rhetocj23 1y agoYes it’s a wealth transfer from existing amd shareholders
- jcranmer 1y agoOpenAI is supposed to be buying something like $100 billion of chips from AMD. On top of the hundreds of billions to like five other companies for AI chips and other compute. Where do those several hundred billions come from? That's the question being asked here.
- tanh 1y agoJust the 1st tranche of shares would be like $6 billion at $220 so if they borrow against that they can fund it. If the hype continues they keep it going
- AlanYx 1y agoNot all of the $100 billion are purchases by OpenAI ("AMD expects to receive more than $100 billion in new revenue over four years from OpenAI and other customers"). For some reason the OpenAI portion of this deal is quoted in gigawatts rather than number of MI450s purchased, which makes it hard to tell how much of that $100 billion is from OpenAI. It's probably around $80 billion.
- jpadkins 1y agospecifically, it's coming from new AMD stock holders that are buying shares at much higher than current prices. And those shareholders are buying a company that they value more because AMD is better positioned in the LLM market because of the side effects of the OpenAI integration. Existing AMD shareholders are getting a great deal; their shares are worth 30% more today and will be worth 5X more if OpenAI gets to use their option. Yes, there is some dilution for existing shareholders, but only after a 5X gain. OpenAI basically self financed the buying of tens of billions of dollars of GPUs by increasing the enterprise value of AMD, and taking a cut of that. And the increase in value is not just the announcement, but the integration work needed to make AMD GPUs as good as Nvidia for inference.
- alberth 1y agoThe 10% option is interesting. As a comparison of stocks over the last 5-years: 1-Year 5-Year Market Cap (Today) ------ ------ --------- AMD 20% 150% $0.35T NVIDIA 50% 1,250% $4.5T Today, AMD is up ~30% (which wipes the past year stock slump). So a healthy portion of AMD overall 5-years gain are just from this announcement today. And OpenAI ($0.50T) is currently valued more than AMD ($0.35T) itself. https://finance.yahoo.com/quote/NVDA/ https://finance.yahoo.com/quote/NVDA/ https://finance.yahoo.com/quote/AMD/ https://finance.yahoo.com/quote/AMD/
- Havoc 1y agoFinally. AMD had recently been pretty stagnant which made little sense given their dominance on CPU and vaguely competitive GPUs (cuda notwithstanding)
- koakuma-chan 1y agoHow is OpenAI valued? It's not publicly traded.
- alberth 1y agoSale of shares on secondary market at that valuation. https://www.reuters.com/technology/openai-hits-500-billion-valuation-after-share-sale-source-says-2025-10-02/ https://www.reuters.com/technology/openai-hits-500-billion-v...
- SecretDreams 1y agoIt's valued from secondary markets based on how much it can raise from private investments. These get reported out eventually which juices the hype further in a bit of a vicious cycle. this cycle also has quite the incestuous component too with how every major company seems to have their hands in each other's pants.
- ihsw 1y ago[dead]
- WhereIsTheTruth 1y agohttps://geohot.github.io//blog/jekyll/update/2025/03/08/AMD-YOLO.html https://geohot.github.io//blog/jekyll/update/2025/03/08/AMD-... It was inevitable, this basically marks the end of affordable gaming GPUs, upgrade while you still can
- Ekaros 1y agoWhatever some analyst say about medium term future of stock markets. I can't see this ending in any other way than very ugly. Or USD to become meaningless...
- vicentwu 1y agowow....
- cameldrv 1y agoIMO underappreciated is that a big bump in the AMD stock price helps AMD a lot because it will help it attract talent. NVIDIA has a lot of very talented people with high standards and that’s a huge part of their success.
- seydor 1y agoopenAI is becoming the single point of failure of this bubble . Who DOESN't have a deal with them
- deleted 1y ago[deleted]
- latchkey 1y agoTwo years ago, I built my entire business exclusively on AMD on the bet that one day they would wake up to AI and dive head on into it. They were totally behind on NVIDIA and my feeling was that Lisa Su would not be able to ignore what was coming. This news far exceeds my expectations for how quickly things are changing. Feeling pretty good now.
- razoorka 1y agoThis whole thing looks like a bubble in slow motion. A “non-profit” that somehow buys stakes, signs multi-billion supply deals, and moves markets based on promises of future models — all while technically owning nothing tangible. They’re leveraging their own paper value to buy more paper value. It’s circular finance at scale: every deal increases the perceived valuation, which then becomes collateral for the next one. No audited revenue stream, no proven business model - just a loop of hype, compute contracts, and self-referenced worth. At some point, someone’s going to ask what exactly is being sold here besides narrative.
- bwfan123 1y agoWhat surprises me is the pace and size of these announcements. So many announcements so fast and each one at least 100B all involving openai. Reminds me of a quote by Chuck Prince - Citigroup CEO from 2008 - "As long as the music is playing, you've got to get up and dance"
- razoorka 1y agoPretty much. Strip away the AI narrative and there’s not much else driving growth right now - manufacturing’s flat, consumer spending’s slowing, and traditional tech margins are shrinking. This artificial boom in “AI infrastructure” is basically the last engine keeping the charts pointing up. When that music stops, there’s nothing underneath it but leverage and power bills.
- diamond559 1y ago[dead]
- tim333 1y agoReminds me of PGs 2008 essay passage: >Sam Altman has it. You could parachute him into an island full of cannibals and come back in 5 years and he'd be the king. If you're Sam Altman, you don't have to be profitable to convey to investors that you'll succeed with or without them. Looks like he's doing well wheeling and dealing us cannibals.
- amacbride 1y agoI do hope that this leads to improvement in the HIP/ROCm software ecosystem. It’s definitely lacking in stability and polish compared to what NVIDIA has built. (Ask me why I’m on my third rebuild of LAMMPS this morning…)
- buyucu 1y agoHIP/ROCm is waaay better than it was a few years ago. It took a very long time, but AMD finally learned the importance of software.
- ctas 1y agoAre consumer cards also benefiting from the improvements or only datacenters?
- hurricanepootis 1y agoFor me personally, blender uses ROCm and ROCm hiprt for Cycles tracing and cycles raytracing acceleration. I am using a Radeon RX 6800 and AMD Ryzen AI 7 350, and it works on Linux. ROCm HIPRT really does speed up cycles rendering (at the cost of more Vram usage). Of course, using the AMD driver on Linux, you get access to the system's RAM with GTT.
- mugivarra69 1y ago[dead]
- melodyogonna 1y agoAnd in situations like this the technology being built by Modular becomes incredibly important.
- resters 1y agoThis is very smart. AMD has left this market untapped for a long time but will close the gap with nvidia rapidly.
- buyucu 1y agoIt's a no-brainer, no? Nobody wants to pay the Nvidia tax.
- zerosizedweasle 1y agoIt's a joke, they're not even trying to disguise the circular money flows anymore.
- rozap 1y agoSimilar infinite money glitch to the dot com boom.
- dboreham 1y agoModulo the obvious financial chicanery, this does confirm to the market that Nvidia doesn't have a moat. So probably positive for AMD in the long term even when the deal itself goes sideways.
- nickysielicki 1y agoI wonder what they intend to use for networking, it’s not really clear from this.
- betaby 1y agoSome white-boxes on Broadcom chips I guess.
- rfv6723 1y agoAMD Pensando DPU https://www.amd.com/en/products/accelerators/pensando.html https://www.amd.com/en/products/accelerators/pensando.html
- nickysielicki 1y agoThis isn't stated in any of their press releases.
- triceratops 1y agoAMD is giving OpenAI chips and 10% of the company? Nice work if you can get it.
- gowld 1y agoAMD gives OpenAI $30B worth (todaty's value) of AMD stock. Cash-poor OpenAI pledges/promises about ~$100B in purchases. AMD makes back the money on (a) 30% volume discount is normal? (b) stock pop from AI hype (AMD popped up ~$100B market cap on the news.) ?
- fancyfredbot 1y agoThis $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 GPUs from AMD. GPUs worth $100bn, and somewhere to put them. OpenAI can't afford that - not even close. So they need to raise financing. On the face of it, the options seem to mean that lending OpenAI the money to buy the GPUs is perfectly safe. You take the stock options as collateral. You lend the money, OpenAI buy the GPUs, the AMD stock goes up, the option conditions are met, and even if OpenAI didn't pay you back the options will let you recover your investment. However, this loan is far less safe than it first appears. The problem is that although lending the money allows openAI to buy GPUs, this doesn't necessarily cause AMD stock to rise. Infact if OpenAI don't find a profitable use for them then both their stock price, and AMD's will go down. And you'll be left with worthless collateral and a big loan to a company which can't afford to pay it back. So they haven't actually magically created financing at all. They just created the illusion of it. It's very clever. But it's fake. The real announcement will be when or if someone lends OpenAI cash.
- lumost 1y agoThis depends significantly on the real cost of the gpu. The cost of enterprise ai GPUs is likely 2 orders of magnitude lower than the current list price. These deals avoid the need to markdown the price of the hardware to gain volume. If I understand the math correctly. Amd could offer the GPUs at around a 20x discount to OpenAI on a deal worth 10-20 billion and be profitable on both amortized R&D and Cost of Goods sold.
- wmf 1y agoIt's probably closer to 5x (80% gross margin) than 20x.
- wmf 1y agoif 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.
- lumost 1y agoThis seems to be OpenAI's path to victory in the AI race. Buy up the supply chain of compute to the extent that no other competitor could possibly have access to the same compute. If they are able to shut out Google/X.AI from the market, there really aren't any viable firms to keep financing next generation models on a pure compute scaling basis. I'm leaving out Anthropic as they don't appear to be as compute focused as X/OpenAI/Google. It's unclear if compute is the sole determiner of AI leadership in the long term or just a contributor.
- layla5alive 1y agoGoogle builds TPUs
- Argonaut998 1y agoWhen I was around 10 years old I remember us asking the teacher why not just print money to solve the worlds problems and the teacher scoffing. It took me another 15 years to realise that’s basically what central banks do, especially these last five years. BTC is at $125k, gold at $4000, and every other week we are inundated with some multi-hundred billion dollar deals somewhere or other. All this talk about multi GW data centers where one will notice the consumer is no where to be found, just like an extension lead plugged into itself. Are we supposed to pretend that this is normal? Does anyone not feel like this push for AI is a last ditch effort to save the global stock market, that it MUST work out?
- tim333 1y agoThere are consumers but they are getting the stuff for free or close to that. Whether they will ever be monetized enough to pay for it all I don't know.
- xwolfi 1y agoYou forget one side of the equation: yes money is "printed" with abandon, but the other side gets an IOU, a debt, to repay with dividend. The government BORROWS printed money, the FED emits debt against that money, and the hole keeps getting bigger. You certainly solved a short term problem, but you also created a long term one. Meanwhile, people make less children, immigration is reduced, debt buyers, the ones receiving the interest, are starting to think twice, someone will be left with the bag and it's gonna be the 401k bondholders relying on these debt interest to finance their non productive retirement. BTC is being bought maybe due to it's non correlation with those debts, but it's also printed virtually with absolutely no tangible value (the network can just collectively decide to change its rules with no legal repercussion), and gold definitely has tangible value (at least, it makes your wife smile and stop haggling when she gets some to put around her neck, so infinite value right there vs btc) and is bought in India and China to prepare for catastrophe, but it has many issues (heavy, hard to transport cross border, dangerous and expensive to store, concentrated in vaults against paper gold with all the issues that this creates etc)
- semiquaver 1y agoHighly relevant money stuff from today: https://www.bloomberg.com/opinion/newsletters/2025-10-06/openai-is-good-at-deals https://www.bloomberg.com/opinion/newsletters/2025-10-06/ope... In a very real sense, OpenAI caused a 25% increase in AMD’s value by announcing the deal, and was allowed to capture about half of that out-of-nowhere value for itself by these options.
- pier25 1y agoOpenAI has signed a deal with AMD that they will buy $100B worth of gpus. On top of the gpus... AMD has offered cheap equity to sweeten the deal and help them get financing to pay for the gpus. Am I getting this right?
- deleted 1y ago[deleted]
- jgalt212 1y agoAMD was up 23% today. Expect many, many more of these cockamamie deals. I heard Books-a-Million has a previously unannounced GPU business line.
- deleted 1y ago[deleted]