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Comment by lelanthran | Hacker News Reader

It's only fantastic news if there is no bubble.

If there is a bubble, AMD just gave away $160m for nothing in return.

The option to buy shares seems pretty well locked down with multiple vesting conditions So pretty unlikely that this ends up in a “for nothing” space

https://ir.amd.com/news-events/press-releases/detail/1260/am...

> AMD just gave away $160m for nothing in return.

Where'd you get this number? The equity is worth closer to 34bil if fully realized?

> If there is a bubble,

and your

> if fully realized

Can both be correct at the same time.

IF this is a bubble, then, yes, AMD gave away a lot of money.

OTOH, IF things turn out exactly perfectly, then AMD just got a discount on a 34b purchase.

No... because the warrants can only be exercised if the share price is at certain points. If AMD goes down, the warrants can't be exercised at all. E.g. we know at least one share price points is when AMD shares are worth $600/share.

I think OpenAI will try and continue this elsewhere, which would be pretty worrying. It lets them not give up any equity, just use their name to pump stocks and earn capital.

That’s exactly it. Their only competitive weapon is brand name right now and they are using that for all its worth

Nothing in return? AMD stock is up 30% today on this news.

> Nothing in return? AMD stock is up 30% today on this news.

Companies don't actually get any money when their stock goes up. Maybe AMD owns a lot of their own stock and can sell it off to see a gain, but the stock simply rising doesn't contribute anything to AMD.

Who is AMD ? A collection of shareholders, all 30% richer ? A collection of employees, all with stock vesting 30% richer ? A bank account in a corporate bank, that indeed changed not at all ?

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