Cautionary Commentary on AMD's Open AI Exposure

15 days ago

Michael Lebowitz

"Yeah, well, AMD just had to deal with open AI. >> Yeah, >> that's a whole different discussion. I probably should have included a graphic that's been floating around showing the relationship Open AI has with Nvidia, with AMD, with uh uh Coreave and many other companies. And this money is just circulating back and forth. And it's healthy in one respect because everyone is helping fund each other meet these goals, but it also creates an Achilles uh heel in, in, you know, a potential big problem. If one of those bigger companies fails, what does that mean for all the other companies? What if Open AI can't be competitive? What if they just can't produce revenue? So, so it's potentially a problem in AI, but for now it's like AMD is what up 30 almost 40%."

Michael discusses the interconnected exposure between technology players, noting that while AMD has rallied 30-40% following its Open AI developments, the revolving fund structure among companies like Nvidia, AMD, and others could create vulnerabilities. He warns that if Open AI fails to generate competitive revenue, the ripple effects could impact these larger companies.

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