The funding can also be distinctive. As a substitute of a money buy, AMD has reportedly given Meta warrants to purchase as much as 160 million shares at $0.01 every. Inventory warrants are monetary devices that provide the proper (however not the duty) to purchase an organization’s inventory at a hard and fast value earlier than a sure expiration date, in line with the distributors.
With 1.6 billion shares excellent, Meta is poised to accumulate 10% of AMD. However maybe not. These shares vest solely as Meta buys extra computing capability. The ultimate tranche vests provided that AMD’s inventory value hits $600, in line with a latest 8K filing. AMD shares are at the moment valued at simply over $200 as of this writing.
The deal is an identical to the one AMD struck with OpenAI final October. That deal was additionally for six GW value of GPUs and included a warrant for as much as 160 million AMD widespread inventory shares structured to payout as soon as sure targets had been met.
Meta isn’t enjoying favorites. Final week it introduced that it’ll additionally deploy standalone Nvidia Grace CPUs in its manufacturing knowledge facilities, citing significantly improved performance-per-watt.
That doesn’t come as a shock to Gaurav Gupta, vice president analyst at Gartner, who says we’re compute constrained and Hyperscalers or frontier mannequin corporations will use a multisource method to get entry to compute. “Nobody needs to be caught with a single vendor. Diversify after which totally different workloads have totally different compute wants.,” he stated.
