AMD

[CityFarmer]

AMD first-quarter results beat expectations

SAN FRANCISCO — Advanced Micro Devices (AMD) yesterday forecast current-quarter revenue above Wall Street’s expectations as it rushes to find new markets to offset its declining core business of PC chips.

The US chipmaker reported revenue of US$1.09 billion, down from US$1.59 billion in the year-ago quarter. It said June-quarter revenue would rise 2 per cent, plus or minus 3 per cent, compared with the March quarter.

http://www.todayonline.com/business/amd-...pectations

[weijian]

The last 1-2months have seen a flurry of deals been announced between AI participants. Headlining was Oracle doing a biggest supply chain financing deal (100bil) with OpenAI in the coming few years. And just as folks were scratching their heads on how OpenAI with ~13bil of annualized revenue could afford to pay Oracle, Nvidia balanced the maths with a 100bil investment in OpenAI.

And now, Sam Altman does one up on Jenson by signing a deal with the latter's biggest rival. And OpenAI is also vested in AMD's success with the warrants been issued to them. The higher AMD share price goes, the more warrants (1 cent/share) will be unlocked.

AMD signs AI chip-supply deal with OpenAI, gives it option to take a 10% stake

AMD executives expect the deal to net tens of billions of US dollars in annual revenue. Because of the ripple effect of the agreement, AMD expects to receive more than US$100 billion in new revenue over four years from OpenAI and other customers, they said.

The deal with AMD will help OpenAI build enough AI infrastructure to meet its needs, OpenAI CEO Sam Altman said in a statement.

As part of the arrangement, AMD issued a warrant that gives OpenAI the ability to buy up to 160 million shares of AMD for one cent each over the course of the chips deal. The warrant vests in tranches based on milestones that the two companies have agreed on.

The first tranche will vest after the initial shipment of MI450 chips set for the second half of 2026. The remaining milestones include specific AMD stock price targets that escalate to US$600 a share for the final instalment of stock to unlock.

In September, Nvidia announced an investment of up to US$100 billion in OpenAI that included a plan to supply at least 10 gigawatts worth of Nvidia systems. The plan includes OpenAI deploying a gigawatt of Nvidia’s next-generation Vera Rubin chips in late 2026.

https://www.businesstimes.com.sg/compani...e-10-stake