David Gurra

Bluemeg Intelligence senior analyst Mandeep Singh says that Meta's six gigawatt AMD deal actually lowers chip spending as a share of CapEx and secures supply tailored to AI inference.

He also writes that the stock-linked structure could give Meta added leverage against NVIDIA.

Mandeep Singh joins us now.

Why does it need leverage against NVIDIA?

It struck a deal last week with them.

Is this more like...

You know, the way that AMD puts it, right, single, double digits, sorry, billions of dollars per gigawatt.

But the gigawatts need to get built, right?

There are operational milestones.

Every time I go and see AMD or we speak to Lisa Su, she puts a lot of emphasis on inference.

You know, MI450 in particular and what those systems can do in the inference phase.

Do you, in this deal, see a point of differentiation for AMD if they do go after the inference piece?

You know, AMD was at pains to point out they'll kind of co-engineer the roadmap to future server design, starting MI450 and then go beyond that.

Mandeep Singh of Bloomberg Intelligence with the React.

Thank you so much.

Now, coming up on the program, Rainer Pope from MATX joins us to discuss his chip startup's latest fundraise as it aims to take on NVIDIA.

That's coming up next.

This is Bloomberg Tech.

I'm Paul Sweeney.

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