OpenAI Inks AMD Chips Deal Worth Tens of Billions of Dollars

[VCT]

I bet all the customers need to prepay more to secure production capacity from TSMC.

 

[sonchoy]

So many companies' stocks now depend on Sam Altman actually buying what he signed those MoUs for.

Oracle
AMD
NVIDIA
Microsoft
Forgetting a few more.

We seem to be converging to a singularity - OpenAI.

 

[hist78]

You mean Elon as well?

Good question. I don’t know whether his friends list is growing or shrinking after so many episodes of drama.

 

[hist78]

So many companies' stocks now depend on Sam Altman actually buying what he signed those MoUs for.

Oracle
AMD
NVIDIA
Microsoft
Forgetting a few more.

We seem to be converging to a singularity - OpenAI.

Samsung
SK hynix

 

[hist78]

It's kind of fun here:

Sept 2025:
Nvidia invests (up to) $100B in OpenAI as they buy GPUs and build out data centers together

Oct 2025:
OpenAI invests up to $60B in AMD as they sell GPUs / build out data centers together

The cynic in me also can't help but wonder "Is OpenAI a money laundering scheme (illegal export sales) for Nvidia?"

AMD's revenue and profit will impact the value of OpenAI's holdings/Warrants at AMD. Consequently it will impact the value of Nvidia's investment at OpenAI.

Additionally, Nvidia announced to invest $5 billion in Intel.

And the $100 billion investment OpenAI acquired from Nvidia can be potentially used to procure hardware from Nvidia's competitors: AMD and Intel.

It's complicated.

 

[swka]

So many companies' stocks now depend on Sam Altman actually buying what he signed those MoUs for.

Oracle
AMD
NVIDIA
Microsoft
Forgetting a few more.

We seem to be converging to a singularity - OpenAI.

the AI frenzy will be pushed a bit further with this for sure. Some say OpenAI has already become too big to fail. What do you guys think about Elon's xAI effort as a comparison?

 

[tooLongInEDA]

Is it just me or do some of these creative financing arrangements (the CoreWeave/nVidia circular relationship being just one example and this feeling in some ways similar) display symptoms of a positive feedback system ? [OpenAI can't have all the $100bns they claim to be investing/spending/whatever]. And if so, should we really be expecting a stable result ?

 

[samwilde]

To me this AI spend is the worst kind of bubble hundreds of billions or a trillion on chips which will be obsolete a year or two afterwards. At least the fiber rollouts in the dot com era were something less perishable.

 

[benb]

Samsung
SK hynix

On this topic: HBM 4E memory employs a separate logic die. Those die are being made at Foundries. Samsung is using their own Foundry while Hynix is using TSMC.

AI Overview
Logic dies for HBM4 memory are being fabbed by different companies, with Samsung Electronics using its own 4nm foundry process and TSMC producing base dies on its 12nm 12FFC+ and 5nm N5 processes for SK Hynix. Some manufacturers are also exploring innovative designs, such as SK Hynix's goal to integrate logic and memory on a single die for HBM4 to improve performance and reduce complexity.

 

[tomatoma]

I bet all the customers need to prepay more to secure production capacity from TSMC.

If this continues, we won't have enough production facilities...

 

[hist78]

On this topic: HBM 4E memory employs a separate logic die. Those die are being made at Foundries. Samsung is using their own Foundry while Hynix is using TSMC.

AI Overview
Logic dies for HBM4 memory are being fabbed by different companies, with Samsung Electronics using its own 4nm foundry process and TSMC producing base dies on its 12nm 12FFC+ and 5nm N5 processes for SK Hynix. Some manufacturers are also exploring innovative designs, such as SK Hynix's goal to integrate logic and memory on a single die for HBM4 to improve performance and reduce complexity.

In addition to SK hynix, I believe Micron also provides HBM memory to TSMC’s customers for packaging at TSMC.

I also believe Samsung, a latecomer to HBM3, is doing (or will do) the same, working with TSMC for integration. I’m not sure how far their collaboration will go.

 

[Brady]

If OpenAI’s monetization doesn’t materialize, this whole bubble is going up in spectacular flames. They are the keystone of a very, very large swath of the economy at this point…