Robbie Whelan

Some of these companies, for example, Anthropic and OpenAI, just simply don't have enough compute to serve everyone who wants to use their products.

And so they have to prioritize certain users ahead of others.

And what that generally means in practice is asking them to pay more.

We spoke to a gentleman who is the founder of a company that uses coding all the time.

He loves using Anthropic's Opus 4.6 tool to create agents that he needs for his business.

But because there have been so many stoppages, outages on Anthropic because of the lack of computing power that we're seeing in the market right now, he's had to shift to other models.

He's using OpenAI a lot more than he used to because his preferred tool from Anthropic is really suffering from this supply crunch that we're seeing.

Another consequence is just that

Maybe the revolution that AI is supposedly going to cause is going to proceed a little bit more slowly than we had initially thought until we can allow the infrastructure piece of it to catch up to the demand piece.

It might feel sort of circular because it is, but we're still in the stage of the AI boom right now where every one of these big deals is such a big headline and it's so exciting for investors that investors just bid up the stocks of the companies that are doing them.

Well, the context here is that AMD is really an upstart when it comes to the chip industry.

There's one big dog in this industry, that's Nvidia.

They control somewhere around 85 or 90% of the market for GPUs, which are the really in-demand chips that power AI computing.

And what we've seen, especially over the last six months,

is that every time one of these semiconductor companies like NVIDIA or AMD does a deal where they sign up a new big customer or expand an existing customer relationship, their stock just jumps like crazy.

These companies have learned that they can do these kind of novel financing approaches when they do these deals.

We've got AMD offering warrants on about 10% of its stock to Meta.

160 million shares of AMD's stock.

In this case, it's one cent per share of stock.

Similar to an option, it's basically a contract that says you're going to get a good deal on our stock.