AMD's Unconventional Strategy: Backing Customer Loans to Drive AI Chip Sales

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In a bold move to accelerate adoption of its artificial intelligence processors, Advanced Micro Devices (AMD) has provided a $300 million loan guarantee to startup Crusoe. The financing is specifically earmarked for Crusoe to purchase AMD's hardware. This arrangement carries notable risk for the chipmaker: should Crusoe fail to secure end customers for the systems it builds, AMD would be obligated to lease the computing infrastructure itself. This aggressive tactic underscores the intensifying battle for market share in the competitive AI semiconductor sector.

AMD is not the first to employ such financial instruments to gain traction. Rivals have previously utilized similar models to expand their footprint in cloud computing. For AMD, the strategy serves a dual purpose: securing large-scale deployments outside of its core partnerships and, crucially, promoting the growth of its ROCm software ecosystem. The company views the generative AI chip market as a major long-term opportunity, forecasting significant growth potential through 2030.

However, the overwhelming dominance held by the industry leader?who commanded a staggering market share as of late 2025?continues to apply pressure. AMD's new Instinct GPUs are seeing increased integration into server systems, such as within Hewlett Packard Enterprise's Helios rack architecture. Yet, achieving deeper market penetration remains a persistent challenge.

Solid Fundamentals Meet Investor Skepticism

AMD's financial performance tells a story of robust operational strength. For the full 2025 fiscal year, its Data Center segment revenue grew by 32%. The fourth quarter saw an operating margin of 33%, and the company's free cash flow nearly doubled. Despite these solid figures, the market's reaction to the Q4 report was decidedly negative. Shares traded lower following the release and continued to lose substantial value in the opening weeks of 2026.

With a market capitalization hovering around $338 billion, AMD shares are valued at an EV/EBITDA multiple of approximately 44.5. Management has provided revenue guidance for the current first quarter of roughly $9.8 billion. While the underlying numbers are healthy, investors appear to harbor doubts about AMD's ability to close the gap in the AI race swiftly?even with the aid of unconventional financing strategies like the Crusoe deal.