Isn’t this basically a kind of insider trading? They wouldn’t be allowed to buy that stock, knowing that this deal is about to happen, but receiving it as part of the deal is okay? That doesn’t feel right to me.
Nah, they are rich so it should be fine.
The rules about insider trading only exist to make poor people feel better.
They absolutely catch badly behaved wealthy people
Confirmation bias.
the SEC does not exist under republican administrations and it only exists to protect rich people under democrat ones, as it has been literally since it was created.
whole goddamn US economy is built around speculation and insider trading trying to get an edge on that speculation
You also have the circular investment. NVIDIA puts money into OpenAI. It uses that money to buy computing power from Oracle, who then fills its datacenters with hardware from NVIDIA. Everybody’s valuation rises.
Edit: valuation, not validation
Insert 2 economists eating shit joke
Go on…
Two economists are walking in a forest when they Come across a pile of shit.
The first economist says to the other “Ill pay you $100 to eat that pile of shit.” The second economist takes the $100 and eats the pile of shit.
They continue walking until they come across a second pile of shit. The second economist turns to the first and says “l pay you $100 to eat that pile of shit.” The first economist takes the $100 and eats a pile of shit.
Walking a little more, the first economist looks at the second and says, “You know, I gave you $100 to eat shit, then you gave me back the same $100 to eat shit. can’t help but feel like we both just ate shit for nothing.” “That’s not true”, responded the second economist. “We increased the GDP by $200!”
I knew this joke as two people selling a painting back and forth
Economists eating shit is funnier
It’s going to be a fucking bloodbath when it bursts.
It fucking should be. It’s been nearly as much an annoyance in my feed as Sovcit Hussein. Death to AI and the bastards trying to shove it down our throats.
So basically they’re paying in exposure.
There’s a mildly amusing bit in there about disrespecting artists and not wanting to pay them money for their work that I’m not a good enough writer to execute (guess I should’ve asked chatgpt to do that for me and posted the result as my own original work do not steal instead of this nonsense ramble).
NVIDIA’s deal makes much more sense. Will use OpenAI revenue to buy shares in OpenAI and still profit if OpenAI goes bankrupt.
This is less a “vote of confidence” in AMD, because shit is free for OpenAI here. I too will buy all the AMD GPUs if you give me AMD stock of same or greater value. This deal structure actually makes AMD look terrible and unconfident in its product. But deal is not transparent enough.
Perhaps unconfident in the future demand of their product.
That’s what I meant, though specs look great, and so “unconfident in execution of future roadmap” or cost/yield issues, but tsmc has history of success in new tech generations. OTOH, Rubin is sticking with 3nm as AMD goes for 2nm on the critical part.
Something is very wrong with this deal. Can know this without knowing any specifics of what’s wrong.
Ah I see now. I meant to imply AMD knows the bubble is going to burst soon and they’re trying to cash in as much as possible now.
I don’t think AMD is on the verge of a technology crisis, but I’d have said the same about Intel way back when so maybe you’re on to something.
AMD knows the bubble is going to burst
definitely not it. Anyone making better GPUs should be able to sell them at a price=performance level. LLMs themselves are forever. Running them on consumer level hardware with privacy is an attractive alternative to US military/Skynet allied OpenAI datacenters. That does mean smaller models than “skynet frontier”.
Reaching for other explantions.
CIA allied bankster money to keep OpenAI solvent with some side deal for AMD.
AMD needed a desperate deal to have lead Skynet developer use some of its GPUs instead of only Nvidia. For all the OpenAI committments, there is both massive risk of OpenAI bankruptcy, but also no matter how good other frontier models are/can be, waiting for OpenAI bankruptcy, and buying their datacenters, makes more sense than adding your own 20.5GW (with Oracle) of GPU/power demand, and outbidding OpenAI for GPUs from non-China sources. But its not as though MSFT/GOOG/META can’t outbid for GPUs, or not make better frontier or smaller open models. I could include mechaHitler for Skynet, but the funding pockets though large, seem as though its a marketing/investment headwind for whatever good technical achievements the mechaHitler models have done. MechaHitler AI has its own financing fuckery valuations with Elon share swaps.
Already Mac M3 ultra 512gb is a great LLM machine for very large LLMs (quantized frontier models). Nvidia and AMD will have larger vram consumer GPUs soon enough. Smarter competitors than OpenAI exist in the space, and smartness goes for better cost per benchmark point and per token.
GPT 5 pro is most expensive model in the world at $150/Mtokens output. A $2000 5090 will output the same tokens/cost in 90 days. With privacy or something you can rent to others without Skynet oppression data concerns. On an open small model that you can posttrain to be better at the domain you are interested in than GPT5 behemoth, and rentals that use whatever domain tailored model they want. But US mega corporations already offer 10x
OpenAI losses are accelerating, and expected 2023-2028 total of $45B, with (banskter/OPenAI optimistic) breakeven in 2029. Skynet military contracts of $1T is the prize. Competition to OpenAI can be forced to provide value through smaller model performance boosts that China (Mistral from France too) already actually has the best real world value models. The previous 5090 token output comparison, gets worse on 100x cheaper small open models that exist, but the privacy and posttraining benefits, priceless.
The common weak link in all of these circular financing deals is OpenAI. Except on this one, where AMD is the weaker side. Of course this makes the banksters pump AMD stock. People like to shout AI/LLM bubble, but OpenAI and MechaHitler going for Skynet is going to get a lot of powerful sustain. Still, Skynet ambition is opposite of best path to making money/useful models until US/Israel military payday.
Honestly, it feels like all of that is as plausible as anything else right now
Or you know, buy the chips fair and square, buy the stock fair and square, provide a service that’s worth something, and make profit from both transactions.
You just dont understand business!
/s
- Approach a business.
- Request the service or product they provide for free.
- Suggest that instead of paying, you’ll advertise the fact that you “bought” from them.
- Argue that your brand is so awesome that associating with it is valuable enough to substitute for the payment.
Isn’t this basically what influencers do?
I’ll pay you with exposure :)
Arguably OpenAI has actual influence unlike anyone calling themselves “influencer”, but yes
AMD too?
So, assuming that Intel is also on the wrong side of history as usual (and that their cards are actually good for gaming, of which I’m not convinced) , you literally can’t buy a decent gaming GPU without paying into the AI nonsense?
Nope sadly, AI needs GPUs and it makes up the bulk of sales of these chips now.
It would be suicide for any of the companies that could make these processors to not go after the biggest market. The result of a company not doing that would be watching all their competitors grow and advance their products whilst their company’s value drops and products stagnate, possibly to a point that recovery to competitiveness would be hard if not impossible.
When AMD’s biggest market was Litecoin (and derivatives like Dogecoin) mining and Nvidia’s hardware was pants at mining, they initially couldn’t increase production of the HD 7000 series quickly enough, so the initial glut of money went to scalpers. They responded by making huge volumes for the Rx 200 series, but shortly after it launched, Litecoin mining ASICs became available and GPU mining stopped being viable. That meant that:
- they’d spent lots of money manufacturing lots of GPUs.
- miners were selling used GPUs for a fraction of the retail cost while those cards were still the current generation.
- people didn’t want to buy a new card for several times the price of the same card but used for a few months.
- retailers had to drop prices to keep selling new cards.
- wholesale prices had to drop to keep retailers stocking new cards.
- AMD weren’t making any profit when they sold these cards.
- the RX 300 cards weren’t compelling compared to a massively discounted RX 200 card, so they didn’t sell in huge quantities or with good margins, either.
This wasn’t the only time ATi/AMD took a calculated risk and it backfired horribly, so with their history of bad luck, chasing the AI bubble in any way that involves risk instead of just selling things for money might be a bad idea.
