AMD Takes Equity in AI Startups for Chip Access

Advanced Micro Devices is selling access to its MI300 and future graphics processing units in exchange for equity stakes in AI startups, a Seeking Alpha analyst wrote. The structure lets AMD lock in demand without discounting its hardware today, the analyst said.

Each equity deal dilutes AMD's near-term earnings per share. The payoff depends on whether the startups survive and grow. The analyst called the strategy a move that preserves pricing power over time.

AMD's Alpha Score sits at 50 out of 100, a Mixed rating from AlphaScala's model, reflecting the tension between the company's AI positioning and the execution risk in these non-standard deals. The compute-for-equity model adds a layer of uncertainty that standard valuation tools do not capture.

A single breakout from an equity-backed startup could offset multiple write-offs. Until then, the dilution is real and the thesis rests on the selection process, the analyst said.