Racing to Catch up With Nvidia, AMD Signs Chips-for-Stock Deal With Meta
The New York Times • • general
Key Points:
- Advanced Micro Devices (AMD) has adopted a strategy of offering major customers equity stakes in its business in exchange for purchasing its AI chips, exemplified by recent deals with Meta and OpenAI.
- Meta agreed to buy billions of dollars worth of AMD chips for AI development and data centers, with an option to acquire up to a 10% stake in AMD, mirroring a similar arrangement between AMD and OpenAI.
- This trend of circular investments, where chip makers and AI companies invest in each other, is also seen with Nvidia's investments in customers like OpenAI and xAI, as well as tech giants Microsoft, Google, and Amazon investing in AI firms reliant on their chips.
- Some Wall Street investors express concern that these intertwined financial relationships
