Wall Street explains how the AMD shares will pay billions of Openai in chips

After the AMD and Openai Extensive partnership on Mondaythe Gossip It immediately turned into an extraordinary method that Openai pays for AMD purchases. It will use its AMD inventory to do this.

To abandon: Openai agreed to help AMD improve the NVIDIA competitor firm and GPS instinct, as well as to buy and publish 6 GB of AMD account capacity over several years. Amd said this deal is worth billions of dollars.

But Openai does not pay the price of this from its own revenues. Instead, AMD Openai gave a boat load of arrow orders – up to 160 million AMDs – which will be launched in slices with some prominent landmarks. These landmarks include specific increases in the share price, as the last segment depends on the stock of AMD to $ 600 each, Amd revealed. They were trading at about $ 165 before the news reached 214 dollars by Market Market on Monday after the announcement.

If the stock price reaches its signs, Openai achieves all its required contributions, and Openai holds all AMD shares, not selling anything along the way, it may make Openai enough on AMD shares to push many graphics processing units. The share value can be about $ 100 billion.

“We note that the last sixth segment requires the market ceiling ~ $ 1T to Stron – Ergo, if Oaii has to keep stocks until the end of the deal, its share is worth about $ 100 billion,” the UBS Timothy Arcuri analyst writes in a research note on Tuesday.

But Arcuri believes that the most likely scenario is that Openai will sell AMD shares along the way to pay its AMD bill. Therefore, basically, this AMD is to finance the purchases of this customer.

However, arcuri argues, verifying the health of AMD AI graphics units can deal with Openai’s work burdens and Ergo any other work burdens of artificial intelligence, are valuable enough for AMD to make this maneuvering financing. “AMD highlighted the continuous customer dialogue outside Openai and this agreement is expected to ultimately accelerate the adoption of AMD adoption,” he writes. In particular, the Openai’s approval seal gives it the sale of its graphics processing units to many cloud service providers that it already provides with the central processing units.

So, in the long run, people who will really pay for the GPANai giant AMD GPUII will buy founders if they already offer the share price.

In many ways, NVIDIA also funds Openai’s purchases for NVIDIA utensils by investing $ 100 billion Announced. The difference, of course, is that multiple NVIDIA investments in Openai gave NVIDIA a stake in a fast -growing artificial intelligence provider, not the other way around.

But what is the AMD option? Through the engineering of a financial deal, it cost Openai Little, you get a large foothold – up to 30 % of the market share, and USB estimates – to one of The largest construction From the next generation of data centers that the world has ever seen.

While Arcuri admits that the AMD deal “can be” less attractive “than NVIDIA,” We see this as the validity of the AMD road map that can fall snow to other customers. ”