Behind the video
The STRATEGY behind OpenAI’s Deal with Nvidia and AMD
The thesis, the calls, and the words behind them. Play a quote to hear it in the original video.
Overall SentimentBullishStrength: 80%
Overall Thesis
OpenAI's deals with both Nvidia (100B for 10GW/$300B chips) and AMD (6GW for up to 10% equity) look circular but reflect real exponential AGI demand; this is a multi-trillion land grab with Lovable, ChatGPT, Cursor, Claude driving real spend and Tesla on the edges.
Narratives
NVDANvidiaNvidia's 100B OpenAI deal secures 300B in Vera Rubin chip revenue plus OpenAI equity; Nvidia sits at the eye of the AGI storm with real exponential demand driving adoption.
Key Arguments
- $100B to OpenAI in exchange for equity and $300B of Vera Rubin chip purchases.
- Vera Rubin is the next generation after Blackwell.
- Demand is exponential and real, not bubble.
- Lovable, Cursor, ChatGPT drive real customer spend up to thousands per month.
Risks acknowledged
- Deals look circular and incestuous.
- Some call it a bubble with made-up revenues.
OPENAIOpenAI
Strongly BullishOpenAI secures chips from both Nvidia and AMD plus equity stakes, making it the biggest private company in the world at 700M users.
Key Arguments
- 700 million users, fastest growing company ever.
- Bigger than SpaceX by market cap now.
- Secures supply from both Nvidia and AMD.
- 10% AMD equity via warrants for free.
AMDAMDAMD's OpenAI deal for 6GW of MI400 represents 600% revenue boost vs 2024's $25B total; OpenAI takes 10% equity which went up 29% on announcement.
Key Arguments
- 6GW of MI400 chips starting 2026.
- Up to $150B deal vs entire AMD 2024 revenue of $25B.
- AMD stock up 29% on announcement.
- Lisa Su is a tremendous CEO and first cousin of Jensen Huang.
Risks acknowledged
- Nvidia is a little better and more integrated at higher price.
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