Ryan Knudson

If OpenAI hits certain milestones for deploying AMD's chips, it has the option to buy AMD shares at a steep discount, at just one cent per share.

— Sue defended the deal in her conversation with Robbie.

Is she at all concerned about an AI bubble?

Sue says that once AI models are up and running and people start relying on them, there'll be almost no limit to the future demand for AI computing.

She estimates that the overall market for AI could be worth $1 trillion a year.

But isn't Sue, the head of an AI chips company, going to say that there's never-ending demand for chips, the thing I happen to be selling?

For AMD, the big money will be coming from inferencing, the space she's pivoted the company toward.

The pivot to inferencing is something other chip makers are also thinking about, including NVIDIA.

Its CEO Jensen Huang has estimated that as much as 90% of the market for computing power will be for inference computing.

NVIDIA has signaled that it welcomes competitors.

It also said on X that it was, quote, a generation ahead of the industry.

AMD isn't the only company trying to break into the AI chip business and cut into NVIDIA's dominance in the market.

Other chip makers like Broadcom and Qualcomm have also emerged as competitors, designing their own AI chips and data center tech.

Silicon Valley giants outside of the chip world are also entering the space.

Google is selling access to data center chips that previously reserved for internal use only.

And Amazon has started selling chips it says are faster and more energy efficient than NVIDIA's.

Do you think AMD will be able to catch up to or even pull ahead of NVIDIA?

So it sounds like she's sort of saying that a rising tide lifts all boats, that there's space for AMD to be worth a trillion dollars and NVIDIA to be worth $4.5 trillion because we're just going to need all this computing power for the AI revolution.

That's all for today.

Tuesday, December 9th.