Comment AMD has issued OpenAI a warrant for roughly 10 percent of its stock. In exchange, the AI model giant will work with its partners (such as Oracle) to deploy up to 6 gigawatts' worth of AMD GPUs.

But while Wall Street rejoices and AMD's share price rallies, OpenAI faces a very real problem. To make good on either the AMD deal or a similar one with Nvidia , it will need to expand its Stargate datacenter initiative massively.

Even then, AMD and Nvidia are still getting the better end of the deal here.

Nvidia's agreement to pony up to $100 billion for 10 gigawatts with OpenAI is really just the GPU giant scratching its own back. Nvidia sells GPUs and networking kit at a sizable margin to the likes of Oracle, who in turn rent them to OpenAI at a profit. And because those payouts are t

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