I WAS WRONG! AMD's Crazy Plan to Dominate AI Chips is Working

About this video

• Video Title: I WAS WRONG! AMD's Crazy Plan to Dominate AI Chips is Working
• Channel: Ticker Symbol: YOU
• Speakers: Alex (implied from "This is Tickerol U. My name is Alex")
• Duration: 00:14:00

Overview

This video discusses the significant partnership between AMD and OpenAI, analyzing its implications for AMD's data center business, its contrast with Nvidia's previous deal with OpenAI, and the broader impact on the AI stock market. The speaker admits to being wrong about AMD's potential and explains the massive growth expected in AI inference demand due to several factors.

Key takeaways

• AMD and OpenAI Partnership: A major deal was announced where OpenAI will deploy 6 GW of AMD GPUs, with warrants for OpenAI to purchase up to 160 million shares of AMD stock at a low price, vesting upon reaching deployment milestones.
• Scale of the Deal for AMD: This partnership represents over 20 years of AMD's current annual data center GPU shipments and could more than double their data center GPU business, significantly increasing total revenues.
• Warrant Structure vs. Nvidia Deal: Unlike Nvidia's direct investment in OpenAI, AMD's deal involves financing OpenAI with equity, contingent on performance milestones, including AMD's stock reaching $600 per share.
• Explosive AI Inference Demand: Demand for AI inference is projected to increase by 1 billion times due to increased AI adoption, larger token counts per prompt, expanding AI use cases beyond text, and the rise of AI agents.
• Market Dynamics: The exponential growth in AI demand suggests that supply will not keep up, meaning companies like AMD and Nvidia will likely sell every chip they produce in the near to medium term, benefiting all AI infrastructure providers.