AMD has granted OpenAI a warrant to purchase up to 160 million shares of common stock at just a penny apiece in exchange for driving up AMD Instinct's share of the GPU market. Assuming OpenAI hits its milestones and AMD's share price grows as it anticipates, OpenAI will be able to use its equity in the company as collateral to solicit new debt financing, and buy time while it figures out how to extract enough cash from AI developments to justify the investment. Just like OpenAI's partnership with Nvidia, the deal is structured in such a way that the AI flag bearer can only exercise its options on the first tranche of AMD stock after its partners have deployed a gigawatt of Instinct GPUs.
Author: Tobias Mann
Published at: 2025-10-06 21:05:22
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