Mandeep Singh

With this deal, I think AMD sort of comes across as the more desperate partner in terms of, you know, giving Meta their stock warrants, and

making sure that you know they are at meta which is going to spend 135 billion dollars out of that half of that will be on chips approximately so think of it this way they currently are about a 10 to 12 billion dollar run rate this could potentially double you know every year in terms of just by adding one customer at the scale that uh you know they they plan to buy the chips from amd

I do, and simply because all these companies are trying to emulate what Google has been doing with TPUs.

And remember, TPUs are used for both training and inferencing, not just for Gemini, but also for Anthropix.

So the fact that they have signed this deal and are willing to go from being a merchant silicon provider to a custom silicon provider for Meta,

And Meta's workloads are more skewed towards video and the family of apps they have, similar to Alphabet.

To me, this is a sign that's what Meta feels they can accomplish with the AMD chips.

Yes, they will continue to use NVIDIA for training, but for inferencing, Meta's workloads are different from any other provider when it comes to the chatbots or anything else that they're doing.

On the East Coast, listen at lunch.

And on the West Coast, listen as soon as you wake up.

Well, so the way XAI has been looking to monetize is through consumer subscriptions so far.

And when I stack them against, let's say, an OpenAI, they are nowhere close to the scale that OpenAI is or Gemini is in terms of consumer subscriptions.

On the

The enterprise side, yes, they have that big defense contract, but that's where the XAI revenue run rate is close to one billion and compare that to Anthropic and the others, they're not growing at the same pace.

Because all these large-angle models are converging and growing really fast, you have to ask yourself, how are they going to fund the next training run?

You need that sort of funding to really keep up in terms of how these models are developing.

I think the merger is really an attempt to make sure that they don't lack the funding because all these companies are tapping, you know, the private market, the debt market.

And, you know, as a combined entity, they have already sort of come up with the $1.25 trillion.

Once they go public, probably $1.5 trillion could be achievable.

But it's a very high valuation multiple that they already have.