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.
So basically another Nvidia, Oracle and OpenAI money loop to inflate shares to make things look good but adding no actual value since the money just goes back to where it came from.
South Seas Bubble ass situation. Can’t wait for it to all collapse and tank all the companies involved into hell.
About everyone who was alive in October of 1929 is dead and the rest of us appear to have forgotten.
Common, they’re surely too big to fail 😎🤑🤑🤑
Right?
Maybe. The US government has allowed gigantic mergers and acquisitions for so long that, yes, some companies can’t go down without fucking up the whole economy.
Representative sample.
Right, and that begs the questions, “What do you mean by ‘economy’?” and correspondingly, “Does it make our lives worse if the billionaires have to buy smaller yachts?”
Cuz I never once got a raise when the economy was booming. Somehow it never seems to hook me up. Strange, isn’t it?