AMD & OpenAI Partnership BREAKDOWN Stock Frenzy & Tech Moats

Welcome to Market Mondays! In this week’s clip, Rashad Bilal, Troy Millings, Ian Dunlap, dive into the huge financial news shaking the tech and investing world: AMD’s explosive stock surge sparked by their newly announced OpenAI partnership. We break down exactly why AMD jumped up to 27% in the morning and shot well past 35%, what OpenAI’s 10% stake means, and why this move has created a frenzy for anyone holding AMD options. The team explores how AMD now becomes a key player in AI hardware, working alongside Nvidia—the known leader in GPUs. Find out why being the “number two” in the space can be just as valuable, and how this strategic partnership fuels global ambitions for technologies like ChatGPT, which is quickly approaching a billion users. Rashad explains the concept of the “circular economy” in tech, detailing how AMD, Nvidia, Broadcom, Oracle, and OpenAI interconnect to supply essential infrastructure, hardware, and cloud services. Learn how options and warrants work in these high-stakes deals, why these investments form an indestructible technological moat, and how family ties among key leaders have influenced this masterful dealmaking. The conversation also covers OpenAI’s historic valuation leap—surpassing SpaceX—and what these moves mean for the future of AI, government, and consumer tech. The hosts share their own experiences and stock picks (shoutout to Dave Shands!), giving viewers a behind-the-scenes look at the power of research and strategic investing. If you’ve been watching Market Mondays for investment insights, this clip delivers confirmation from insiders in the AI space. The team also drops price predictions for AMD and Nvidia and celebrates the biggest options wins and market highs of the year. Don’t miss smart tips on long-term partnerships, generational wealth, and why tech alliances are setting up for lasting success—even through future market downturns. *Watch now to get all the details on the AMD & OpenAI partnership, how it’s shaking up the tech market, and what you should watch for as an investor!* *Hashtags:* #MarketMondays #AMD #OpenAI #Nvidia #StockMarket #AIInvesting #TechStocks #FinancialNews #AMDStock #AIRevolution #OptionsTrading #CircularEconomy #TechMoat #InvestingTips #GenerationalWealth #EyUniversity #MarketFrenzy #QuantumComputing #CloudInfrastructure #DataCenters --- Catch all the insights and analysis right here—subscribe for future clips breaking down the biggest stories in tech, AI, and investing!

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Episode Transcript

Speaker 1 (00:01):
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Speaker 2 (00:43):
Okay, let's get into the big story of today, which
is amd So amd uh one up twenty seven percent
on the morning, fueled by news that open AI partnership
twenty five percent and did that.

Speaker 3 (01:02):
It shot up thirty five percent temper.

Speaker 4 (01:04):
Cent state.

Speaker 2 (01:08):
And yeah, that that led to a frenzy in the
stock market. Anybody that had amd options obviously, you know,
look at their portfolio. Our text on Dave Shance today
was going, he was like, Dann, that's crazy because Obviously,
if you watch market Moneys, you see that Dave Shan's
invested in the AMD options a few months ago. So
I know that's something that you. We posted it actually

(01:29):
on Instagram. That was one of your stock picks, Troy
at the beginning of the year or last year.

Speaker 4 (01:35):
He thought AMD and so yeah, talk about am D.

Speaker 1 (01:41):
Yeah, it kind of in the clip was encompassed where
we were talking about in video 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 is okay to be number two. And it
was for this reason when we think about in video,
every time we talk about it, we're talking about another
Max seven company that is acquiring ships. Because of the
price point, it kind of alienate some of the audience.

(02:04):
And so when Meta buys millions of chips for its
data centers, when Amazon is buying, when Microsoft is buying
obviously through open ai, you're talking about millions and millions.

Speaker 3 (02:15):
I think one.

Speaker 1 (02:16):
Of the key pieces of what was said from the
president of open Ai, 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.

Speaker 3 (02:30):
And so when he says.

Speaker 1 (02:31):
All of humanity, he's no longer talking about just corporate
accounts and big Max seven 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.

Speaker 3 (02:51):
This is really a circular economy.

Speaker 1 (02:53):
Can we use the real word later, we can use
the word circular economy.

Speaker 3 (03:00):
That's exactly what this is. That's exactly what this is.

Speaker 1 (03:02):
This is, Hey, we have infrastructure, right Oracle, we have
connectivity bro com, we have capital from in video and
video 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.

(03:23):
So I think the order they have like over eight
hundred million users now for Chat, 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.
And we talk about we use it every day. There
are still people who don't have the app downloaded. That's
going through change in the next two to three years,
so the demand's going to be even higher. So they

(03:44):
need to have more GPUs at a price point that
can be sustainable for their growth, which is why the
ten percent stake inside of AMD, the number two player,
makes a lot of sense for them. But what they
actually did wasn't a warrant, so you're not familiar with
what a warrant is. 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.

(04:05):
They didn't disclose it yet, but that's what this is.
It makes perfect sense. So in Vidio as a partner,
AMD is now under their ownership ten percent.

Speaker 3 (04:16):
State. This is just going to keep going in a cycle.

Speaker 1 (04:19):
This is why you gotta follow and track the money
because it'll lead you right to it.

Speaker 3 (04:23):
Everything's pretty evident.

Speaker 5 (04:25):
Yeah, I know we've been talking a lot about circular
investments in circular deals, but I want to frame it,
try don't worry as an indestructible technological mode.

Speaker 3 (04:36):
So AMD has been a picking.

Speaker 5 (04:38):
Stock club for six years, and Vidia took the helm
open AI like don't you love when the babies get
along and just bring the technological and financial vibe to you.
This partnerships ensures the safety of that sector being AI

(04:59):
and the safety of open ai as they start to
become public.

Speaker 3 (05:05):
And Vidia, of course took a different route.

Speaker 5 (05:07):
They paid open Ai amb issue a warrant so that
way you're covered on both ends.

Speaker 3 (05:14):
That's even a hedge in itself.

Speaker 5 (05:16):
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.

Speaker 3 (05:28):
The thing that I do look like about open ai.

Speaker 5 (05:30):
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 open ai has a very
good chance to touch or have a touch point to
every user on Earth. And they did an amazing job
with the rollout of sore as well, so on every front, enterprise, eventually, government, consumer,

(05:54):
they're doing incredibly well.

Speaker 3 (05:57):
Job. Well done to AMD and it helps at least
and Jensen, our cousins.

Speaker 5 (06:01):
You can't leave your cousin out of your favorite cousins
out out of the deal structure so.

Speaker 3 (06:06):
This is to me.

Speaker 5 (06:10):
Our technological mote that will not be destructed anytime soon.

Speaker 3 (06:14):
Yeah. And we had.

Speaker 1 (06:15):
Again an interesting call or class the other week when
we talked about energy and open as is going to
deploy six gigawattes of AMD's GPU six, Like we're talking
about that's the size that could power like Los Angeles
as much as energy is gonna need. I'm gonna I
want to break this down because I wrote it. I
was like, I gotta explain this, but I got to
write it down to So here's how this we called

(06:38):
this circular.

Speaker 3 (06:39):
Economy in this mote. We'll say moright, We'll say right, yeah,
say so in.

Speaker 1 (06:46):
Video last week AI Open AI announced that partnership with
the VIGION and it was big news.

Speaker 3 (06:51):
We saw it was one hundred billion dollars. So in
video and we broke that down.

Speaker 1 (06:55):
If they helped build those data centers, right, which one
gigawate data center could us up to fifty billion to
get online twenty five million to thirty five twenty five
billion to thirty 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 film to
get that infrastructure up. AMD now comes on, right, they're

(07:19):
providing hardware. Right, So we've got hardware with video hardware
with AMD. And then you got broad coom 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 inconnected systems is
what they'll do. And then you got Oracle with Stargate
that's going to provide data center operations and cloud lease.

Speaker 3 (07:40):
And don't forget about the cloud.

Speaker 1 (07:41):
Right when we talked about those servers, we talked about AWS,
we talked about Google, we talked about a Zora with Microsoft.
Oracle's going to provide that. So here's how this works.
The better open AI does, the more it consumes infrastructure,
the more infrastructure is built, the more demand can scale,
the more hardware capacity, the more advanced A becomes, creating
more demand.

Speaker 3 (08:01):
In turn, circular.

Speaker 5 (08:04):
Circular is the word also, but on another lesson, this
is how generation and wealth look tent should work. I
invest in your own business, you invest into mine long
term partnership. Let's build a mote that cannot be advanced
or encroached upon and make sure we protect each other

(08:24):
at all costs.

Speaker 3 (08:26):
Like that aspect of it.

Speaker 5 (08:27):
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 son. This is a master
class in how to do long term partnerships and a
great onboarding for open AI. For one, the market potentially

(08:49):
tanks in twenty seven and twenty eight for them to
come on board and probably be Opening are.

Speaker 3 (08:55):
The greatest startup in American history.

Speaker 1 (08:58):
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.

Speaker 3 (09:08):
This rollout is this.

Speaker 5 (09:10):
I haven't seen nothing as good since they rolled out
fifty Mouth soundtrack.

Speaker 3 (09:15):
This is better. This is amazing, yo.

Speaker 1 (09:18):
The interesting thing is when they did the video call
the video announcement last week, a part of the interview,
Sam Aldman is saying that, hey, we still have a
bunch of announcements still to come this year. That was
just last week last Friday, the evaluation came out of
five hundred. Now that you add this tempent Steak in
AMD we're going way past five hundred billion now, so

(09:41):
at this point I'm thinking this he's in the running
for maybe like Person of the Year at this point
with the.

Speaker 3 (09:48):
Amount of deals that he's done.

Speaker 5 (09:50):
For sure, and the hard wad hadn't even dropped yet.

Speaker 3 (09:55):
It's pretty remarkable. Yeah, it's absolutely incredible.

Speaker 4 (09:59):
For sure.

Speaker 2 (10:00):
We also we got some insight on AMD earlier too
in it before last year from a friend of ours.

Speaker 4 (10:07):
Too, so perhaps it's.

Speaker 2 (10:10):
Good that well we said it on Market Mondays said
it's helpful to you know, know what's coming down the pipeline.

Speaker 3 (10:19):
But that's part of it, is doing the research too.

Speaker 1 (10:21):
So even when when a friend of us said it
it was for me, it was felt like, oh, it's
confident research, that it.

Speaker 3 (10:27):
Was done right, like we're on the right path.

Speaker 1 (10:29):
Even now, I still get text 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.

Speaker 3 (10:44):
It has to be one.

Speaker 1 (10:44):
Of the greatest shows 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.

Speaker 5 (10:58):
For, yep, and banking, crypto, all sides of tech being
at the video. But yeah, three year price AMD three
sixty six seventy nine and three year price four in
video three oh five forty four.

Speaker 4 (11:16):
Yeah. Sure, and shout out to Dave Chance two once again.

Speaker 3 (11:21):
Lunch on you that.

Speaker 2 (11:24):
So man, You guys Eyo University. The options class choice
options class vitally important if you in Uya University. Take
advantage of that because those options have been going crazy. Obviously,
if you see the marketers at all time, Aldy know
that the options are going.

Speaker 3 (11:40):
To be.

Speaker 4 (11:42):
Pretty well positioned.

Speaker 2 (11:44):
So yeah, a lot of those options are going crazy
over the last couple of months.

Speaker 3 (11:49):
Sure we show a Micron hit two hundred today. I
mean it's been a hell over year, man, it's been
over Yeah, Ernest, what's up? Look?

Speaker 1 (11:56):
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