AMD(US:AMD) Benzinga·2025-10-07 07:55Core Viewpoint - Renowned short-seller Jim Chanos questions the financial benefits of the partnership between Advanced Micro Devices Inc. (AMD) and OpenAI, suggesting it may not be as profitable for AMD as it seems [1][2]. Group 1: Partnership Structure - AMD is expected to receive "tens of billions of dollars in revenue" while providing OpenAI with equity warrants of a similar potential value [1][5]. - Chanos criticizes the trade-off, questioning if the deal should yield more than "tens of billions of dollars in revenue" given the equity warrants being offered [2]. Group 2: Market Demand Concerns - Chanos challenges the narrative of limitless demand for computing power, pointing out the contradiction in sellers needing to offer significant incentives [4]. - He likens the arrangement to "vendor financing," where a seller subsidizes a buyer's purchase, implying minimal net gain for AMD shareholders [2]. Group 3: Stock Performance - Following the announcement of the partnership, AMD's stock surged over 23.71% to $203.71 per share, reflecting strong investor optimism [7]. - AMD's stock has increased 68.87% year-to-date and 19.15% over the year, indicating a positive market response despite Chanos's critical assessment [7]. Group 4: Accounting Practices - Chanos raised concerns about AMD's accounting practices, suggesting that the true cost of the equity warrants might be obscured in non-GAAP earnings reports [6].