Binding NVIDIA and AMD, engaging in "cross-shareholding," Altman aims to create an "AI conglomerate."

By expanding its "cross-shareholding" network, OpenAI is deeply binding itself with the entire AI industry chain.

Recently, John Foley, head of the flagship investment column at the Financial Times, wrote that what Sam Altman is building seems to be not just an AI company, but an enterprise empire deeply bound by interdependence and shareholding relationships. By transforming key suppliers into a community of interests, OpenAI is firmly locking its success with the fate of the entire AI industry chain.

The latest move is a far-reaching agreement between OpenAI and chip manufacturer AMD. According to the deal disclosed on Monday, this collaboration appears to be similar to the deal OpenAI reached with NVIDIA last month, essentially a long-term customer commitment: OpenAI promises to purchase high-end chips in large quantities, while the chip manufacturer secures stable future revenue.

Moreover, AMD has also provided OpenAI with warrants, granting the latter the right to acquire 10% of the former's shares. Once the news broke, AMD's market value soared by over $80 billion within minutes, as the market cast a vote of confidence in Altman's "bundling" strategy with real money, signaling the emergence of a new type of "AI conglomerate" centered around OpenAI.

Creating a Huge "AI Community of Interests" through "Chip Marriage"

The article emphasizes that OpenAI's alliances with two major AI chip competitors are a key part of its empire's expansion. The core of these two deals is to leverage OpenAI's enormous computing power demand as a bargaining chip to secure deep binding and financial support from chip suppliers.

In the collaboration with NVIDIA, OpenAI obtained cash flow by selling its own equity, while NVIDIA locked in one of its most important customers. In the partnership with AMD, the terms obtained by OpenAI are even more favorable.

Details of the deal show that as part of the deepening cooperation, NVIDIA will purchase up to $100 billion worth of OpenAI shares over time; while AMD has provided OpenAI with a generous warrant, allowing OpenAI to acquire 10% of AMD's shares at a cost of only $1.6 million if specific performance targets are met. If AMD's stock price reaches $600, the value of this equity will soar to $96 billion.

Market analysis suggests that this is not difficult to understand: in the AI chip race, AMD is still a follower. By deeply binding with OpenAI, AMD not only hopes to achieve chip sales of up to $200 billion (equivalent to its total revenue over seven years), but also seizes the opportunity to demonstrate the powerful performance of its new MI450 chip to attract more customers.

The article points out that the network of interests Altman is building extends far beyond chip manufacturers. In fact, looking at the bigger picture, a carefully designed and intricate web of relationships has already formed The key nodes in this network include: NVIDIA is not only a partner of OpenAI but also holds shares in the data center company CoreWeave, of which OpenAI is also one of the shareholders; Microsoft, as an early investor in OpenAI, has long been deeply involved in its development; at the same time, OpenAI maintains a complex cooperative relationship with Google, being both a customer of Google Cloud services and a supplier, as its models are provided to other users through the Google Cloud platform.

This interlocking shareholding and business relationship is forming a large "AI interest community."

New Wine in Old Bottles? Drawing on the Japanese Zaibatsu Model

Consolidating supply chain relationships through cross-shareholding is an ancient corporate strategy. Altman's current approach is a new interpretation of this model in the AI era.

According to the article, historically, Japanese companies are known for their "Keiretsu" model, which forms a tight network of cross-shareholding between suppliers and customers, although some companies are now loosening this structure to release capital.

German financial institutions have also had similar traditions; for example, Deutsche Bank once held shares in automotive giant Daimler. In the United States, Merrill Lynch was once a major shareholder in Bloomberg L.P.

Although not orthodox, this model aims to promote non-confrontational cooperation between supply and demand sides. In the 1990s, Chrysler drew on the spirit of the Japanese model (rather than cross-shareholding) and, through collaboration with suppliers, became one of the most profitable large automakers in the U.S.

The article analyzes that while this arrangement benefits suppliers and customers to cooperate non-confrontationally, a "win-win" arrangement may turn into a "lose-lose" when problems arise. As more companies rely on OpenAI's growth and shift their business focus to serve this important client, their risk exposure in terms of profits and stock prices also increases.

For Altman, this strategy of empire building is quite shrewd. Ensuring OpenAI's success is becoming a common interest for all parties involved, thereby building a more solid ecosystem for the company