Famed Short-Seller Jim Chanos Questions AMD's Revenue Forecast Following OpenAI Deal: 'Shouldn't This Deal Bring In More... For $AMD?'

Core 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][3]. Group 1: Deal Structure and Financial Implications - Chanos scrutinizes the deal's structure, indicating that AMD is expected to receive "tens of billions of dollars in revenue" while also providing OpenAI with equity warrants of a similar potential value [2][3]. - He raises concerns about the trade-off, questioning if giving up such significant equity warrants should result in more than "tens of billions of dollars in revenue for AMD" [3]. - Chanos implies that the net gain for AMD shareholders could be minimal, comparing the arrangement to a form of "vendor financing" where a seller subsidizes a buyer's purchase [4]. Group 2: AI Market Demand - Chanos challenges the prevailing narrative of limitless demand for computing power in the AI market [5]. - He finds it contradictory that sellers would need to offer significant incentives in a market characterized by supposedly infinite demand for compute resources [6]. - His remarks cast doubt on the organic strength of the demand for AI computing power, questioning the sustainability of the current market dynamics [6]. Group 3: Partnership Details - The partnership involves AMD supplying its Instinct GPU accelerators for OpenAI's next-generation AI infrastructure [7].