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AMD and OpenAI's strategic partnership to deploy six gigawatts of AMD GPUs shows the massive impact of AI on public companies.

AI is transforming traditional computing infrastructures, shifting from CPUs to GPUs, which is expected to drive hundreds of billions of dollars in investment.

AMD and OpenAI just closed a massive GPU deal. Could be worth $60 billion or more over the next five years. AMD stock rocketed up 35% since the announcement.

NVIDIA's $100 billion investment in OpenAI involves using NVIDIA's AI semiconductors in OpenAI's data centers, raising concerns about late-stage bubble dynamics similar to past tech bubbles.

OpenAI's deal with AMD includes a 10% ownership if milestones are hit, showcasing a win-win strategy leveraging manufacturing capacity.

OpenAI has struck a multi-billion dollar deal with AMD, securing 6 gigawatts of compute capacity to power its AI data centers. In exchange, OpenAI could secure up to a 10% stake in AMD if it meets certain deployment milestones.

NVIDIA is transitioning from being a graphics chip company to an AI company, with its stock value increasing significantly as AI becomes a larger use case.

The circular nature of these deals, where companies like Nvidia invest in AI startups who then buy their chips, is raising fears of a bubble in AI.

The AI bubble remains large but hasn't popped. Companies like OpenAI are selling a high-margin story while hoovering capital cheaply and investing in infrastructure, which may not depreciate as fast as expected.

The market is rewarding AI investments, but there's skepticism about the long-term economic sense. The real question is whether these investments create long-term liabilities that hinder future profitability.