AMD & OpenAI Partnership BREAKDOWN Stock Frenzy & Tech Moats

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0:31Such good feelings. Can you hypnotize someone into sleeping with you? I gave her some suggestions to be sexually aroused. Can you get someone to join your cult? NLP was used on me to access my subconscious. Mind Games, a new podcast exploring NLP, a.k.a. neurolinguistic programming. Is it a self-help miracle, a shady hypnosis scam, or both? Listen to Mind Games on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Hello, hello, all my people. What's up? It's Questlove. Recently, I had the opportunity to sit down with the one and only A$AP Rocky. He reflects on his journey from Harlem roots to global icon status and discovering the hip-hop origin of his name.

1:14The ledge was on the TV. Rakim had the Buckethead Kangol join on. Pops was like, that's Rakim. That's who you named after. I just, damn the f***ing f***ing swag. But listen to the Questlove show on the iHeartRadio app, Apple Podcasts, or wherever you get your podcast. A new year doesn't ask us to become someone new. It invites us back home to ourselves. I'm Mike Della Rocha, host of Sacred Lessons, a space for men to pause, reflect, and heal. This year, we're talking honestly about mental health, relationships, and the patterns we're ready to release. If you're looking for clarity, connection, and healthier ways to show up in your life, Sacred Lessons is here for you.

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2:37Brilliantly boring since 1865 is a service mark of the PNC Financial Service Group, Inc. PNC Bank, National Association, member FDIC. Okay, let's get into the big story of today. which is amd um so amd uh went up 27 on the morning um fueled by uh news that open ai partnership 25 and that uh it shot up 35 percent 10 percent stake 10 percent stake for open ai um and yeah that that led to a frenzy in the stock market. Anybody that had AMD options, obviously, you know, look at their portfolio. I text Dave Shands today. He was going, he was like, damn, that's crazy. Cause obviously if you watch market Monday, you saw that Dave Shands invested in AMD option a few months ago.

3:31So I know that's something that you, we posted it actually on Instagram. That was one of your stock picks Troy at the beginning of the year or last year. He thought AMD. and so yeah, talk about AMD Yeah, it kind of in the clip was encompassed where we were talking about NVIDIA being obviously the leader of the space when it comes to GPUs and who that number two player was going to be and sometimes in business it's okay to be number two and it was for this reason when we think about NVIDIA, every time we talk about it, we're talking about another Mag 7 company that is acquiring your chips because of the price point, it kind of alienates some of the audience and so when meta buys millions of chips for its data centers, when Amazon is buying, when Microsoft is buying, obviously through OpenAI, you're talking about millions and millions.

4:20I think one of the key pieces of what was said from the president of OpenAI, he said, this is so core to our mission. If we really want to be able to scale to reach all of humanity, this is what we have to do in regards to the partnership. And so when he says all of humanity, he's no longer talking about just corporate accounts and big Macs and companies. He's saying we need to have enough GPUs to make sure that everyone on the planet can use our service. Now, if you just look at the cap table, how much that would cost, and we'll break down how this is a circular economy. This is really a circular economy.

4:58Can we use the real word later? Oh no. We can use the word circular economy because that's that's exactly what this is that's exactly what this is this is hey we have infrastructure right oracle we have connectivity broco we have capital from nvidia nvidia and the more we make and the more demand all those things will start working together now we need to make sure that we have enough bandwidth we need to have enough hardware so that everyone can use it so i I think, what do they have, like over 800 million users now for Jack PDT? Yeah. You're approaching a billion mark. That's only going to increase with the amount of people that are actually becoming more familiar with it.

5:40We talk about we use it every day. There are still people who don't have the app downloaded. That's going to change in the next two to three years, so the demand is going to be even higher. So they need to have more GPUs at a price point that can be sustainable for their growth, which is why the 10 % stake inside of AMD, the number two player, makes a lot of sense for them. But what they actually did was a warrant. So if you're not familiar with a warrant, it's like an option in a sense, right? Like they have the right, not the obligation to buy or own the shares of AMD at a certain price point.

6:10They didn't disclose it yet. But that's what this is. And it makes perfect sense. So NVIDIA is a partner. AMD is now under their ownership, 10 % state. This is just going to keep going in a cycle. This is why you got to follow and track the money because it'll lead you right to it. everything's pretty evident. Yeah. I know we've been talking a lot about circular investments and circular deals, but I want to frame it, Troy, don't worry, as an indestructible technological moat. So AMD has been a pick and stock club for six years. NVIDIA took the helm, open AI. Don't you love when the babies get along and just bring the technological and financial vibe to you.

6:56This partnership ensures the safety of that sector being AI and the safety of OpenAI as they start to become public. NVIDIA, of course, took a different route. They paid OpenAI, AMD issued a warrant, so that way you're covered on both ends. That's even a hedge in itself. And then like you said, with Oracle being in that infrastructure, it sets them up to be the leader, not only in AI, but potentially in quantum, having all those assets in line. The thing that I do like about OpenAI, it reminds me when he said that, it reminds me of Bill Gates. I want a PC in every home in the world. I think OpenAI has a very good chance to touch or have a touch point to every user on Earth.

7:50and they did an amazing job with the rollout of soar as well so on every front enterprise eventually government consumer they're doing incredibly well um job well done to amd and it helps that lisa and jensen are cousins you can't leave your cousin out your favorite cousins out out of the deal structure so this is uh to me um a technological mode that will not be destructed anytime soon. We had, again, an interesting call or class the other week when we talked about energy and Open Air is going to deploy six gigawatts of AMD's GPUs. We're talking about that's the size that could power Los Angeles.

8:34That's much as energy is going to need. I want to break this down because I wrote it. I was like, I got to explain this. I got to write it down. Here's how this, we call this circular economy, Ian. It's Mo. We'll say Mo. Right. We'll say Mo. Right. Yeah. We'll say Mo. So NVIDIA last week, they are opening. I announced that partnership with a billion and it was big news. We saw it was a hundred billion dollars. So NVIDIA, and we broke that down if they help build those data centers, right, which a one gigawatt data center could cost up to 50 billion to get online, 25 million to 35, 25 billion to 30 billion of that is going to go just to the GPUs, obviously through the infrastructure so nvidia is helping provide hardware and they're providing capital for them to get that infrastructure up amd now comes on right they're providing hardware right so you got hardware with nvidia hardware with uh amd and then you got broadcom stepping in as a supplier for interconnected systems right we talked about that's the role that they play and they're huge in that obviously they have gpus as well but interconnected systems is what they'll do.

9:40And then you got Oracle with Stargate that's going to provide data center operations and cloud leasing. Don't forget about the cloud. When we talked about those servers, we talked about AWS, we talked about Google, we talked about Azure with Microsoft. Oracle's going to provide that. So here's how this works. The better OpenAI does, the more it consumes infrastructure. The more infrastructure is built, the more demand can scale. The more hardware capacity, the more advanced AI becomes creating more demand in turn. Circular. Circular. is the word. Also, on another lesson, this is how generation and wealth looks and should work.

10:16I invest into your business, you invest into mine, long-term partnership, let's build a moat that cannot be advanced or encroached upon and make sure we protect each other at all costs. Like that aspect of it with Jensen and Lisa being family, Sam coming into the tech family, Larry Ellison, if you know about his lineage and how he's helping this on, this is a master class in how to do long term partnerships and a great onboarding for open AI for when the market potentially tanks in 27 and 28 for them to come on board and probably be as open. are the greatest startup in american history it's crazy you said that because i was just going to say that it has now passed spacex to have the largest valuation of any private company in history history this rollout is this i haven't seen nothing as good since they rolled out 50 cents in the eight miles soundtrack this is better this is amazing you know the interesting thing is when they did the NVIDIA announcement last week, a part of the interview, Sam Altman is saying that, hey, we still have a bunch of announcements still to come this year.

11:35That was just last week. Last Friday, the valuation came out at$500. Now that you add this 10 % stake in AMD, we're going way past$500 billion now. At this point, I'm thinking he's in the running for maybe person of the year at this point. with the amount of deals that he's done. For sure. And the hardware hadn't even dropped yet. It's pretty remarkable. Yeah, it's absolutely incredible. For sure. We also got some insight on AMD earlier, too, and before last year from a friend of ours, too. Perhaps. It's good. Well, we said it on Market Monday. Yeah, we said it. is helpful to you know know what's coming down the pipeline but that's part of it is doing the research too so even when a friend of ours said it it was for me it was felt like oh it's confirmation research that was done right like we're on the right path even now I still get texts from people in the AI space like yo bro you're spot on like you're spot on so now it's even more conviction when we talk to the audience here because not only are we saying it like that's why I said Market Mondays and I'm not just saying because we're i'm here it has to be one of the the greatest shows of for investment ever ever because the people that are watching it in these spaces are confirming it and saying you know what in fact just what you're saying is right here's some other things to look for yep ai banking crypto all sides of tech being at nvidia um but yeah three-year price amd 366.79 and three-year price for NVIDIA 305.44.

13:21Yes, sir. Shout out to Dave Shands, too, once again. Dave, lunch on you when we in Atlanta, bro. He got in on that call. So, man, you guys, EY University, the options class, Troy's options class, vitally important. If you're in EY University, take advantage of that because those options have been going crazy. Obviously, if you see the market is at an all-time high, I didn't know that the options are going to be pretty well positioned. So, yeah, a lot of those options have gone crazy over the last couple of months. It's true. We saw Micron hit 200 today. I mean, it's been a hell of a year. It's been a hell of a year.

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15:13So go to square.com slash go slash E-Y-L to learn more about how your business can grow with Square. That's S-Q-U-A-R-E dot com slash G-O slash E-Y-L. Block, Inc. is not a bank. Banking services provided by Square Financial Services, Inc. and Sutton Bank. Members FDIC. Loans are subject to credit approval. What if mind control is real? If you could control the behavior of anybody around you, what kind of life would you have? Can you hypnotically persuade someone to buy a car? When you look at your car, you're going to become overwhelmed with such good feelings. Can you hypnotize someone into sleeping with you?

15:54I gave her some suggestions to be sexually aroused. Can you get someone to join your cult? NLP was used on me to access my subconscious. Mind Games, a new podcast exploring NLP, a.k.a. neurolinguistic programming. Is it a self-help miracle, a shady hypnosis scam, or both? Listen to Mind Games on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Hello, hello, all my people. What's up? It's Questlove. Recently, I had the opportunity to sit down with the one and only ASAP Rocky. He reflects on his journey from Harlem roots to global icon status and discovering the hip-hop origin of his name.

16:34The ledge was on the TV. Rakim had the bucket hat can go join on. My pops was like, that's Rakim. That's who you named after. I just was like, damn the f***ing f***ing swag. Listen to the Questlove show on the iHeartRadio app, Apple Podcasts, or wherever you get your podcast. A new year doesn't ask us to become someone new. It invites us back home to ourselves. I'm Mike Della Rocha, host of Sacred Lessons, a space for men to pause, reflect, and heal. This year, we're talking honestly about mental health, relationships, and the patterns we're ready to release. If you're looking for clarity, connection, and healthier ways to show up in your life, Sacred Lessons is here for you.

17:17Listen to Sacred Lessons with Mike Delaroach on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Hey, it's Joel. And Matt. From HowToMoney. If your New Year's resolution is to finally get your finances in shape, we've got your back. Prices, they're still high, and the economy is all over the place. But 2026 is the year for you to get intentional and make real progress. That's right. Each week, we break down what's happening with your money, the most important issues to focus on, and the small moves that make a big difference. Kick off the year with confidence. Listen to How to Money on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

17:55This is an iHeart Podcast. Guaranteed human.