I’m curious what the equity placements with OpenAI and Janes Street represent as far as cost of compute vs market prices. I assume they included a discount against market rates at the time of placement, but that market has been moving and may be evolving in value…
Three different deals, and each can be characterized only as far as the record goes.
OpenAI was a price concession, and the filings treat it as one. The FY2025 statement of cash flows carries the issuance under non-cash investing and financing activities as "Issuance of common stock for contract incentive $350," and Note 1 treats it as consideration payable to a customer. No cash came in. That is an effect on price per unit of compute, sized at $350m and recognized against the revenue it was issued to obtain.
Jane Street was an equity purchase alongside a commercial arrangement. The $1.0bn arrived as cash at $109.00 a share in the body of an Item 3.02 current report, and the approximately $6bn commitment was furnished separately under Item 7.01 the same day, with no unit pricing in it. How it bore on price or cost per compute cannot be known from the filings.
NVIDIA was a supplier taking equity. Beyond what it does for the economics of buying the equipment, it says nothing about what compute is sold for.
I’m curious what the equity placements with OpenAI and Janes Street represent as far as cost of compute vs market prices. I assume they included a discount against market rates at the time of placement, but that market has been moving and may be evolving in value…
Three different deals, and each can be characterized only as far as the record goes.
OpenAI was a price concession, and the filings treat it as one. The FY2025 statement of cash flows carries the issuance under non-cash investing and financing activities as "Issuance of common stock for contract incentive $350," and Note 1 treats it as consideration payable to a customer. No cash came in. That is an effect on price per unit of compute, sized at $350m and recognized against the revenue it was issued to obtain.
Jane Street was an equity purchase alongside a commercial arrangement. The $1.0bn arrived as cash at $109.00 a share in the body of an Item 3.02 current report, and the approximately $6bn commitment was furnished separately under Item 7.01 the same day, with no unit pricing in it. How it bore on price or cost per compute cannot be known from the filings.
NVIDIA was a supplier taking equity. Beyond what it does for the economics of buying the equipment, it says nothing about what compute is sold for.