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

tanh 1y ago
I think OpenAI will try and continue this elsewhere, which would be pretty worrying. It lets them not give up any equity, just use their name to pump stocks and earn capital.
- rhetocj23 1y ago
  That’s exactly it. Their only competitive weapon is brand name right now and they are using that for all its worth
dist-epoch 1y ago
Nothing in return? AMD stock is up 30% today on this news.
- lelanthran 1y ago
  > 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.
  - xwolfi 1y ago
    Who is AMD ? A collection of shareholders, all 30% richer ? A collection of employees, all with stock vesting 30% richer ? A bank account in a corporate bank, that indeed changed not at all ?
SecretDreams 1y ago
> 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?
- lelanthran 1y ago
  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.
hmm37 1y ago
No... because the warrants can only be exercised if the share price is at certain points. If AMD goes down, the warrants can't be exercised at all. E.g. we know at least one share price points is when AMD shares are worth $600/share.
Havoc 1y ago
The option to buy shares seems pretty well locked down with multiple vesting conditions So pretty unlikely that this ends up in a “for nothing” space https://ir.amd.com/news-events/press-releases/detail/1260/amd-and-openai-announce-strategic-partnership-to-deploy-6-gigawatts-of-amd-gpus https://ir.amd.com/news-events/press-releases/detail/1260/am...

tanh 1y ago

I think OpenAI will try and continue this elsewhere, which would be pretty worrying. It lets them not give up any equity, just use their name to pump stocks and earn capital.

rhetocj23 1y ago
That’s exactly it. Their only competitive weapon is brand name right now and they are using that for all its worth

dist-epoch 1y ago

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

lelanthran 1y ago
> 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.
- xwolfi 1y ago
  Who is AMD ? A collection of shareholders, all 30% richer ? A collection of employees, all with stock vesting 30% richer ? A bank account in a corporate bank, that indeed changed not at all ?

SecretDreams 1y ago

> 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?

lelanthran 1y ago
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.

hmm37 1y ago

No... because the warrants can only be exercised if the share price is at certain points. If AMD goes down, the warrants can't be exercised at all. E.g. we know at least one share price points is when AMD shares are worth $600/share.

Havoc 1y ago

The option to buy shares seems pretty well locked down with multiple vesting conditions So pretty unlikely that this ends up in a “for nothing” space https://ir.amd.com/news-events/press-releases/detail/1260/amd-and-openai-announce-strategic-partnership-to-deploy-6-gigawatts-of-amd-gpus https://ir.amd.com/news-events/press-releases/detail/1260/am...