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AMD Finances OpenAI's Multi-Billion Dollar GPU Purchase Through Stock Warrant Agreement
AMD and OpenAI announced a partnership where OpenAI will purchase 6 gigawatts of AMD compute capacity worth billions, paid for through up to 160 million AMD stock warrants that vest as milestones are achieved. The warrants could be worth approximately $100 billion if AMD's stock reaches $600 per share, though analysts expect OpenAI will likely sell shares incrementally to fund the purchases. This arrangement allows AMD to gain significant market share in AI data center infrastructure while effectively having investors finance OpenAI's purchases through stock price appreciation.
Skynet Chance (+0.01%): The deal accelerates AI infrastructure deployment by reducing financial barriers for major AI labs to acquire massive compute capacity, potentially enabling faster scaling of powerful AI systems with less economic constraint on growth.
Skynet Date (+0 days): By creating novel financing mechanisms that reduce capital requirements for compute buildout, this arrangement slightly accelerates the timeline for deploying large-scale AI infrastructure that could support more advanced systems.
AGI Progress (+0.01%): The partnership provides OpenAI with 6 gigawatts of additional compute capacity over multiple years, directly expanding the computational resources available for training and deploying increasingly capable AI models toward AGI.
AGI Date (+0 days): This financial engineering removes capital constraints as a limiting factor for OpenAI's compute scaling, modestly accelerating their ability to train larger models sooner than if traditional financing were required.