OpenAI signed multi-year deals with Nvidia and Oracle for $1.5 trillion without consultants - FT
Kyiv • UNN
OpenAI head Sam Altman and his team signed multi-year deals with Nvidia, Oracle, AMD, and Broadcom worth $1.5 trillion without involving external consultants. This drew criticism due to the lack of detailed financial terms and unconventional deal structures.
OpenAI head Sam Altman and his closest circle of executives have concluded huge deals with virtually no external consultants, despite the "unusual structures" linking suppliers, investors, and customers. UNN reports with reference to the Financial Times.
Details
To coordinate huge multi-year agreements with Nvidia, Oracle, AMD, and Broadcom for the supply of chips and other computing infrastructure, OpenAI CEO Sam Altman and his closest companions involved a minimum of external consultants. Specialists and lawyers, who are considered necessary for the development and support of plans in the context of large infrastructure agreements, were not invited.
In new deals worth $1.5 trillion, Sam Altman relied on several assistants, including startup president Greg Brockman, CFO Sarah Friar, and Peter Hoschele, who was recently promoted to a new position.
The unconventional process has provoked what analysts are already criticizing the deals for: a lack of detailed financial terms. Also in focus of criticism are the so-called cyclical structures linking suppliers, investors, and customers.
As the FT writes, despite the fact that Wall Street rewarded OpenAI with rising stock prices after the announcement of each deal, Altman's team is now focused on the technical aspects of the chip deals. But the financial details "will be known later."
Recall
In mid-October, it became known that OpenAI announced the acquisition of Software Applications Inc., a startup that develops an AI-based interface for macOS.
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