Earn Your Leisure Podcast

Episode: AMD & OpenAI Partnership BREAKDOWN: Stock Frenzy & Tech Moats
Hosts: Rashad Bilal & Troy Millings
Date: October 13, 2025

Overview:

This episode dives deep into the recent, headline-making partnership between AMD and OpenAI, which has caused a surge in AMD’s stock price and sent ripples throughout the tech and investment sectors. The hosts break down the mechanics and implications of the deal, analyze its impact on the competitive AI semiconductor landscape, and discuss the broader theme of "technological moats" shaping the future of AI and generational wealth.

Key Discussion Points & Insights

1. The AMD & OpenAI Partnership and Stock Market Frenzy

• Background:
  • AMD’s stock shot up by 27% in the morning, then 35% after details of OpenAI’s significant 10% stake (through warrants) in AMD broke ([02:09]).
  • "Anybody that had AMD options, obviously, you know, look at their portfolio." — Market Analyst ([02:09])
• Personal Validation:
  • The hosts note this validates long-term stock picks discussed on the show and social media.
  • Troy: “That was one of your stock picks, Troy, at the beginning of the year or last year, you thought AMD.” ([02:51])

2. The “Number Two” Strategy in Tech

• Troy explains:
  • Nvidia dominates the GPU field, but being runner-up (AMD) can be lucrative, especially when serving different segments.
  • “Sometimes in business it’s okay to be number two. And it was for this reason…” — Troy ([03:06])
• Broader Reach:
  • OpenAI’s mission: reach “all of humanity” not just Big Tech clients, requiring mass GPU deployment at sustainable costs. ([03:54])

3. The Details: How the Deal Works

• The Warrant:
  • OpenAI didn’t buy shares outright but acquired a warrant—a right, not obligation, to buy AMD stock at a set price later ([04:18]-[04:41]).
  • "It's like an option...they have the right, not the obligation to buy or own the shares of AMD at a certain price point." — Troy ([04:37])
• Circular Economy:
  • The deal reflects a tech ecosystem where hardware, software, and capital flow between the same core industry players.
  • “This is a circular economy…This is why you got to follow and track the money, because it'll lead you right to it.” — Troy ([04:41]-[05:49])

4. Building an Indestructible Tech Moat

• Structural Moat:
  • Co-host: "I want to frame it, Troy, as an indestructible technological moat...this partnership ensures the safety of that sector being AI and the safety of OpenAI as they start to become public." ([05:49])
  • The deal locks in future competitive dominance, as AMD, Nvidia, Oracle, and OpenAI collaboratively control crucial infrastructure routes.
• Strategic Family Ties:
  • "It helps that Lisa and Jensen are cousins. You can't leave your cousin out, one of your favorite cousins out of the deal structure." ([06:47])
• Bill Gates Parallel:
  • OpenAI is echoing the vision of a PC in every home—a real possibility for global reach ([07:21]).

5. The Scale: Massive Energy and Infrastructure

• Energy Demand:
  • “OpenAir is going to deploy 6 gigawatts of AMD's GPUs. That's the size that could power like Los Angeles.” — Troy ([07:39])
• How It Loops:
  • Nvidia builds data center infrastructure; AMD and Broadcom supply hardware; Oracle and other clouds rent out server resources.
  • The better OpenAI does → more infrastructure built → advanced AI requires more demand → circular reinforcement ([08:10]-[09:29]).

6. Generational Wealth and Strategic Partnerships

• Generational Player Model:
  • Co-host: “I invest into your business, you invest into mine. Long-term partnership. Let's build a moat that cannot be advanced or encroached upon and make sure we protect each other at all costs...” ([09:29])
• Tech Royalty and Networks:
  • Observing the intertwined families and partnerships (Lisa Su, Jensen Huang, Sam Altman, Larry Ellison) as a “master class in how to do long term partnerships.” ([09:57])
• Preparation for Market Cycles:
  • Positioning OpenAI and partners to weather potential downturns in 2027-2028.

7. OpenAI — The Greatest Startup Ever?

• Valuation Milestone:
  • “It has now passed SpaceX to have the largest valuation of any private company in history.” — Troy ([10:22])
  • Partnership likely pushes valuation well beyond $500 billion mark ([10:42]).
• Memorable Moment:
  • "This rollout...I haven't seen nothing as good since they rolled out $0.50 soundtrack.” — Co-host ([10:32])
  • “This is better.” — Troy ([10:40])

8. Inside Insights & The Importance of Research

• Insider Confidence:
  • Hosts receive ongoing AI industry validation on their predictions ([11:43]).
  • Troy: “...it's even more conviction when we talk to the audience here because not only are we saying it...people in these spaces are confirming...what you're saying is right.” ([11:43])
• Empowering Listeners:
  • Encouragement to take investment education classes, like “Choice Options,” as their research keeps outperforming in the tech sector ([12:41]).

Notable Quotes & Memorable Moments

• On AMD’s Role:
  • "Sometimes in business it’s okay to be number two." — Troy ([03:06])
• On the Circular Tech Economy:
  • “The better OpenAI does, the more it consumes infrastructure, the more infrastructure is built, the more demand can scale…” — Troy ([08:10])
• On Generational Wealth:
  • “This is how generational wealth looks and should work...Let’s build a moat that cannot be advanced or encroached upon and make sure we protect each other at all costs.” — Co-host ([09:29])
• On OpenAI’s Place in History:
  • “It has now passed SpaceX to have the largest valuation of any private company in history.” — Troy ([10:22])
  • “This rollout...I haven't seen nothing as good since they rolled out $0.50 soundtrack." — Co-host ([10:32])
  • "This is better." — Troy ([10:40])

Important Timestamps

• [02:09] – Market Analyst introduces AMD/OpenAI partnership and market impact
• [03:06] – Troy explains the “number two” advantage and hardware market
• [04:18–04:41] – Details on OpenAI’s warrant deal with AMD
• [05:49] – Discussion of “indestructible technological moat”
• [07:39] – Energy demands and the massive scale of OpenAI’s hardware operations
• [08:10–09:29] – “Circular economy” dynamics among leading tech firms
• [09:29] – Strategic generational and familial partnerships
• [10:22] – OpenAI’s new record-breaking valuation
• [11:43] – Hosts reflect on industry confirmation and research
• [12:41] – Investment education and stock pick performance

Final Thoughts

• The episode breaks down how strategic alliances between legacy hardware giants (AMD, Nvidia), AI leaders (OpenAI), and infrastructure providers (Oracle) are establishing powerful, mutually reinforcing tech moats.
• The hosts celebrate their accurate predictions and urge listeners to keep learning and pay attention to industry trends and the “circular economy” of modern tech.
• OpenAI’s rapid valuation growth, new deals, and visionary leadership place it firmly at the center of the tech world, potentially as the greatest startup in US history.