Wall Street analysts explain how AMD’s own stock will pay for OpenAI’s billions in chip purchases.
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AMD’s Stock Fuels OpenAI Chip Deal Wall Street Analysts Explain How AMD’s Own Stock Will Pay For OpenAI’s Billions In Chip Purchases After AMD and OpenAI announced an expanded partnership on Monday, Wall Street analysts explained how AMD’s own stock will pay for OpenAI’s billions in chip purchases , sparking intense discussion across the tech and finance world. Image Credits:Google Instead of paying in cash, OpenAI will use AMD’s stock to fund its purchase of AMD’s Instinct GPUs , a key rival to Nvidia’s chips. The deal involves OpenAI helping AMD refine these chips while also deploying up to 6 gigawatts of compute capacity over several years — a deal worth billions in revenue for AMD. How OpenAI Plans To Pay AMD Using AMD’s Own Stock Here’s where things get interesting: OpenAI isn’t paying for the GPUs directly. Instead, AMD has granted OpenAI up to 160 million stock warrants , which will vest in tranches as certain performance and market milestones are achieved. One of those milestones? AMD’s stock soaring to $600 per share . …
