$100 billion shock: Meta signs major deal with AMD
Source: Xinhua
Meta will buy up to 6 gigawatts of computing power from AMD and also get warrants to buy up to 160 million AMD shares, which equates to roughly 10% of the company, for $0.01 apiece.
The deal is near identical to one that AMD struck with OpenAI in October last year, News.Az reports, citing JWS.
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It's also an example of what critics have called "circular financing," an arrangement whereby one company pays another company either money or stock, and that company then turns around and buys products or services from the first company.
Recently, investors have been rewarding companies for such deals, even if they involve circular financing. AMD's shares opened up 7% on Tuesday morning.
By Faig Mahmudov
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