Part 2/7:
The Financial Mechanics of the Deal
Under this agreement, OpenAI is set to receive up to 160 million shares of AMD stock via performance-based warrants priced at a mere $0.01 each — a stark contrast to AMD's current stock price of around $165. This effectively grants OpenAI a 10% stake in AMD at a fraction of the market value, with shares vesting as deployment milestones are achieved.
This arrangement is hailed as a major win for AMD, historically seen as lagging behind Nvidia in AI hardware dominance. The move allows AMD to gain a foothold in the fast-growing AI compute market while providing OpenAI with independence from exclusive chip suppliers.