The math behind the AMD and OpenAI deal!
OpenAI gets warrants to buy 160 million AMD shares at $0.01 each as they deploy 6 gigawatts of hardware. Now that AMD crossed the $600 hurdle, those shares are worth roughly **$100 Billion**.
Estimates show that OpenAI will spend around **$90B–$100B** in cash to buy those chips.
OpenAI will have spent \~$100B on hardware, but they will walk away owning \~$100B in AMD equity.
What a deal! 😎