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> allows OpenAI to buy 160 million shares at 1 cents a share. > I think at least part of the 10% is if AMD stock reaches 600. AMD market cap today is $350B (a

> allows OpenAI to buy 160 million shares at 1 cents a share. > I think at least part of the 10% is if AMD stock reaches 600. AMD market cap today is $350B (at $200/share). AMD would need to 3x their market cap ($1,000B) to be at $600/share. Which would mean that OpenAI could gain $100B in AMD stock, for the minuscule cost of only $1.6 million (160 million shares at 1 cent each). -- Sam is spinning the world on his finger tip with these deals he's crafting.

SirMaster 1y ago
Is there any real reason AMDs market cap can't be close to what Nvidia's is? Or like even half of what Nvidia's is?
- dbbr 1y ago
  My uneducated one word answer: CUDA.
  - alwahi 1y ago
    if your castle had a moat like CUDA....
    - CuriouslyC 1y ago
      CUDA isn't even a moat for inference, only for training.
    - jakogut 1y ago
      How's Microsoft's Direct3D moat working out for them now? It's turned out to have been much less of a moat than it once was. Triple-A titles that are developed for Windows using Direct3D 12 are getting support on Linux through Proton within days of release, or even at launch sometimes.
  - preisschild 1y ago
    Could quickly change if open alternatives were suddenly more popular or with stuff like ZLUDA https://github.com/vosen/ZLUDA https://github.com/vosen/ZLUDA
- blihp 1y ago
  Try to use AMD GPU's for AI and you'll understand. Unless you have lots of your own engineers to throw at making their stuff work, it's easier for most companies just to keep throwing money nVidia's way.
  - SirMaster 1y ago
    I understand that it's that way today. But I am talking about "potential". If OpenAI and AMD engineers get their heads together and make some new software etc, couldn't AMD in theory become as valuable as Nvidia or at least half as valuable? It seems like to take a 350M market cap company to 2B+ or a 6x+ increase in stock price would be worth doing for a few hundred million dollar investment in software and such?
    - blihp 1y ago
      By the time that could feasibly come to fruition, I suspect the AI bubble will have long since popped. Despite making decent GPUs for graphics, AMD can't seem to get its act together on the GPU compute front.
- resters 1y ago
  There is not. AMD didn't invest in tooling and interconnect technology the way Nvidia has, probably because of antitrust fears (or maybe mismanagement). But in terms of core GPU technology and fab, AMD is close to being a peer. I've been saying this for several years now and it seems that someone finally listened :)
lucianbr 1y ago
What is AMD getting that's worth giving OpenAI $100B? Sure, they're giving it from other stockholders not from their pocket, but still. It's presumably a lot of value, there has to be a good reason, no? Is it that Sam promises to somehow make AMD increase their market cap, or help at least?
- delusional 1y ago
  > What is AMD getting that's worth giving OpenAI $100B? The other $300B
  - lucianbr 1y ago
    Where is this other $300B coming from? Is OpenAI paying AMD $400B or what? I looked at the article but it seems disjointed and hard to parse for me. And I don't see where it mentions some $400B coming to AMD one way or another. It's implied... how? Sorry, this isn't sarcasm or anything like it. I just don't get it and your answer does not help.
    - jerf 1y ago
      You have put your finger on the AI bubble's biggest problem right now. Companies are making promises that they are currently completely incapable of fulfilling, in the hopes that someday they can, and the stock market are valuating these promises as done deals. Predicting the end of bubbles is well known to be a fool's errand, but if this AI bubble is still going in a year I can only imagine how casually these companies will have to be throwing around multi-trillion dollar promises to each other to keep the stocks pumped up.
      - chasd00 1y ago
        > Companies are making promises that they are currently completely incapable of fulfilling, in the hopes that someday they can, and the stock market are valuating these promises as done deals. That reminds me a lot of Enron. As long as the stock keeps going up everything is fine but when it does t everything comes crashing down.
lacker 1y ago
> Sam is spinning the world on his finger tip with these deals he's crafting. That was my reaction too, this sort of weird deal seems very Sam Altman style. Like Elon Musk - ironically, the archenemies are very stylistically similar.

SirMaster 1y ago

Is there any real reason AMDs market cap can't be close to what Nvidia's is? Or like even half of what Nvidia's is?

dbbr 1y ago
My uneducated one word answer: CUDA.
- alwahi 1y ago
  if your castle had a moat like CUDA....
  - CuriouslyC 1y ago
    CUDA isn't even a moat for inference, only for training.
  - jakogut 1y ago
    How's Microsoft's Direct3D moat working out for them now? It's turned out to have been much less of a moat than it once was. Triple-A titles that are developed for Windows using Direct3D 12 are getting support on Linux through Proton within days of release, or even at launch sometimes.
- preisschild 1y ago
  Could quickly change if open alternatives were suddenly more popular or with stuff like ZLUDA https://github.com/vosen/ZLUDA https://github.com/vosen/ZLUDA
blihp 1y ago
Try to use AMD GPU's for AI and you'll understand. Unless you have lots of your own engineers to throw at making their stuff work, it's easier for most companies just to keep throwing money nVidia's way.
- SirMaster 1y ago
  I understand that it's that way today. But I am talking about "potential". If OpenAI and AMD engineers get their heads together and make some new software etc, couldn't AMD in theory become as valuable as Nvidia or at least half as valuable? It seems like to take a 350M market cap company to 2B+ or a 6x+ increase in stock price would be worth doing for a few hundred million dollar investment in software and such?
  - blihp 1y ago
    By the time that could feasibly come to fruition, I suspect the AI bubble will have long since popped. Despite making decent GPUs for graphics, AMD can't seem to get its act together on the GPU compute front.
resters 1y ago
There is not. AMD didn't invest in tooling and interconnect technology the way Nvidia has, probably because of antitrust fears (or maybe mismanagement). But in terms of core GPU technology and fab, AMD is close to being a peer. I've been saying this for several years now and it seems that someone finally listened :)

lucianbr 1y ago

What is AMD getting that's worth giving OpenAI $100B? Sure, they're giving it from other stockholders not from their pocket, but still. It's presumably a lot of value, there has to be a good reason, no? Is it that Sam promises to somehow make AMD increase their market cap, or help at least?

delusional 1y ago
> What is AMD getting that's worth giving OpenAI $100B? The other $300B
- lucianbr 1y ago
  Where is this other $300B coming from? Is OpenAI paying AMD $400B or what? I looked at the article but it seems disjointed and hard to parse for me. And I don't see where it mentions some $400B coming to AMD one way or another. It's implied... how? Sorry, this isn't sarcasm or anything like it. I just don't get it and your answer does not help.
  - jerf 1y ago
    You have put your finger on the AI bubble's biggest problem right now. Companies are making promises that they are currently completely incapable of fulfilling, in the hopes that someday they can, and the stock market are valuating these promises as done deals. Predicting the end of bubbles is well known to be a fool's errand, but if this AI bubble is still going in a year I can only imagine how casually these companies will have to be throwing around multi-trillion dollar promises to each other to keep the stocks pumped up.
    - chasd00 1y ago
      > Companies are making promises that they are currently completely incapable of fulfilling, in the hopes that someday they can, and the stock market are valuating these promises as done deals. That reminds me a lot of Enron. As long as the stock keeps going up everything is fine but when it does t everything comes crashing down.

lacker 1y ago

> Sam is spinning the world on his finger tip with these deals he's crafting. That was my reaction too, this sort of weird deal seems very Sam Altman style. Like Elon Musk - ironically, the archenemies are very stylistically similar.