Jim Cramer Asked Lisa Su, 'Why Is Meta Taking A Share In You?' When Nvidia Didn't Give Equity: Here Is What She Said
Benzinga • • business
Key Points:
- Jim Cramer questioned AMD's decision to include performance-based equity warrants for up to 160 million shares in its multiyear AI chip deal with Meta, contrasting it with Nvidia's similar Meta partnership that did not involve equity concessions.
- AMD CEO Lisa Su defended the warrant structure, emphasizing the deal's transformational potential for shareholders and highlighting the importance of scale and co-optimization in the rapidly evolving AI accelerator market projected to reach $1 trillion in five years.
- The AMD-Meta agreement involves deploying up to 6 gigawatts of AI compute capacity using AMD's Instinct GPUs, with warrants vesting based on shipment and performance milestones to ensure mutual financial upside.
- AMD also signed a multiyear deal with OpenAI to
