AMD's OpenAI and Meta Deals Come With a $1 Billion Catch

What happened: AMD reported a $1.1 billion noncash charge in the third quarter, mostly tied to stock warrants issued under its AI chip supply agreements with OpenAI and Meta. Key numbers: $1.1 billion noncash charge; GAAP earnings of $1.46 per share; MI450-series GPUs being dispatched. Why it matters: The warrants let OpenAI and Meta obtain sizeable stock shares if objectives are met, strengthening ties with major AI customers but introducing potential dilution for existing shareholders. Coverage: 3 outlets in 24h

AMD reported a $1.1 billion noncash charge in the third quarter, mostly tied to stock warrants issued under its AI chip supply agreements with OpenAI and Meta.

The warrants let OpenAI and Meta obtain sizeable stock shares if objectives are met, strengthening ties with major AI customers but introducing potential dilution for existing shareholders.