Jensen Huang on AMD’s Stock Grant to OpenAI: A Smart Deal, OpenAI Has No Money to Pay Me
Jensen Huang Responds to Rival’s Bold Move
NVIDIA CEO Jensen Huang has weighed in on a major strategic move by AMD.
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AMD’s 10% Equity-for-Order Strategy
In a surprising deal, AMD offered 10% of its company equity to secure an OpenAI chip order. Huang described the move as both “clever” and “surprising,” using the word “surprised” twice in his remarks:
> “Considering how excited they are about their next-generation product, this is imaginative, unique, and surprising.
> I’m surprised they gave up 10% of their company before the product was even built. So, I think it’s clever.”
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How NVIDIA’s Approach Differs
Huang emphasized a clear distinction:
- NVIDIA sells products directly to OpenAI
- AMD exchanged equity for large chip orders
When asked how OpenAI would pay, Huang admitted: “They don’t have the money right now.”
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OpenAI’s Funding Strategies
Huang outlined possible funding sources for OpenAI:
- Exponential growth in future revenue
- Equity financing
- Debt issuance
NVIDIA also retains the option to co-invest in OpenAI’s future fundraising rounds.
Huang reflected: “My only regret is that when OpenAI was founded, we didn’t have enough money to invest more.”
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The “Circular Transaction” in AI
Only two weeks prior:
- NVIDIA announced up to $100 billion investment in OpenAI
- OpenAI agreed to build & run NVIDIA systems needing 10 gigawatts of power (~4–5 million GPUs)
Shortly after:
- OpenAI struck a deal with AMD, agreeing to buy chips (including MI450) to consume 10 GW power in coming years
- AMD granted OpenAI warrants for up to 160 million shares (~10% equity)
- Shares can be purchased at $0.01 if milestones are met and AMD stock hits $600
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Oracle Joins the Loop
Separately, OpenAI sealed a $300 billion cloud deal with Oracle.
- Oracle must purchase billions in NVIDIA GPUs
- NVIDIA’s investment in OpenAI → flows to Oracle → Oracle buys NVIDIA hardware → forming a perfect capital loop
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Scale of OpenAI’s Commitments
- Total AI compute deals with NVIDIA, AMD, Oracle: Over $1 trillion
- Positive cash flow not expected before 2029
- Current heavy burn rate
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Other Strategic Investments
xAI Funding Round
- NVIDIA to invest $2 billion in Elon Musk’s ~$20 billion xAI round
- Huang: “Almost any project Elon is involved in, we want to be part of it.”
- Uses Special Purpose Vehicle (SPV) for purchasing NVIDIA chips, leased to xAI for 5 years
CoreWeave
- NVIDIA holds 7% stake
- Huang: “One of NVIDIA’s fantastic recent investments”
- OpenAI invested $350 million pre-IPO, expanding cloud agreement to $22.4 billion
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Venture Deal Activity
- NVIDIA participated in 52 AI venture deals in 2024
- Completed 50 transactions by September 2025
- CFO: Funds allocated to “most strategically important parts of the ecosystem”
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Market Concerns
Some analysts warn of a possible AI bubble:
> “If in a year we find out there’s an AI bubble and it bursts, these deals might be among the early warning signs.” — Morningstar analyst
NVIDIA spokesperson responded:
> “We do not require any invested company to use NVIDIA technology.”
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Broader AI Investment Landscape
These high-stakes deals reveal deep interconnections among tech giants, creating capital loops that concentrate investment flows.
For independent creators and entrepreneurs seeking alternatives to complex equity structures, AiToEarn offers:
- Open-source, non-equity participation in AI value creation
- Tools to create, publish, and monetize across platforms
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Huang’s Final Note
In an interview:
> “We will not require them to use this investment to purchase NVIDIA technology. They can use it for whatever they want.”
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References
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