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by lesuorac 250 days ago
The CEO of Tesla, Elon Musk, was sued over an extremely similar situation. So somebody will care.

That said, this is really about the principal. Sure, if I give you $10 and you give me a hamburger it's not like some illegal transaction. But to say the $10 comes from thin air is wrong. It doesn't come from thin air.

I would bet that if one day OpenAI decided to sell 10% of AMD the stock would crash from $600 to below $150. IIUC, there's 1.6B shares of AMD while only 54M shares trade daily so dumping 160M shares would tank their price [1]. If AMD gives OpenAI 10% of the company and OpenAI goes under, it's going to take AMD's share price with it.

[1]: https://www.marketwatch.com/investing/stock/amd
1 comments
gowld 250 days ago
What Musk suit are you talking about?

The rest of your comment doesn't make sense.

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lesuorac 250 days ago
His 56 billion pay package [1]. In order for him to receive it the stock would need to increase 13x [2] (the AMD stock increase from 150 to 600 is only 4x). Despite succeeding at doing that, he and Tesla were sued over the pay package.

If OpenAI fails then its going to have to liquidate the company. Selling 160M shares of AMD is going to tank it's price.

[1]: https://en.wikipedia.org/wiki/List_of_lawsuits_involving_Tes...

[2]: https://ir.tesla.com/press-release/tesla-announces-new-long-...

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tyre 250 days ago
It's not really a similar situation. His pay package was invalidated because of how much control Elon had over the board and the shareholders not being fully informed of the likelihood that the necessary goals would be hit.

Whatever the merits of the lawsuit, it wasn't about the pay package being too diluting.

If OpenAI fails, it will be acquired and/or the shares will be sold in bulk. They're not going to log in to etrade and sell 160m shares on the open market.

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lesuorac 250 days ago
> Whatever the merits of the lawsuit, it wasn't about the pay package being too diluting.

But this is exactly the point. If somebody is going to sue Elon when he 13x the share price then of course somebody is willing to sue AMD if they 4x it.

Elon's pay package was voted on by shareholders. AMD's deal with OpenAI had none of that so if anything it's more ripe for a lawsuit.

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wmf 250 days ago
I think there's a covenant preventing OpenAI from dumping AMD shares on the open market. Obviously AMD's price will move down during the crash but at least the shares will be liquidated in an orderly fashion.
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