00:00 Speaker A
Dan, it is great to see you. Let’s start here with that meta and AMD news announcing this 6 gigawatt GPU deal. How big is this deal, Dan? Frame it for us. And why is six gigawatts matter so much? And what does that even mean, Dan, in in practical terms?
00:23 Dan
Yeah, I mean, I it is wild that they, you know, companies continue to announce these deals in gigawatts. Just tell us how many GPUs you’re selling. That’s, you know, important for for anybody that’s following the industry. 6 gigawatts, that could power millions of homes, basically. It’s a massive deal. It’s a multi uh generational, multi-year deal where uh AMD will provide chips to Meta uh in its new uh Helios uh rack scale system.
00:51 Dan
So, you see Nvidia, they usually have those those racks that they show off at their events. Uh AMD is rolling this out. It’s its first huge rack scale solution that they’re going to be offering and uh uh Lisa Su has said, you know, it’s the best rack scale solution in the world. taking kind of like a a swipe at at Nvidia, but you know, we’ll we’ll have to see how that plays out. But it’s it’s an absolutely massive deal.
01:14 Dan
Uh it comes just after Meta had announced a similar deal with Nvidia last week. So clearly they’re diversifying their ensuring that they aren’t, you know, being held to just one vendor when it comes to the GPUs.
01:29 Dan
Uh and for AMD it’s a it’s a coup, right? Because they’re selling uh presumably millions and millions of GPUs. Uh and at the same time, we get into this conversation of these circular deals because just as they’re selling these GPUs, then meta is taking uh potentially shares of AMD uh as part of different tranches based on different uh performance levels.
01:54 Dan
So, uh once they deliver the first uh gigawatt of chips, then meta would buy the first tranche and so on and so on and so forth. So, uh you know, it it kind of uh raises that that specter of the the circular again as as well as, you know, the, you know, overall build out of AI.