AMD books $1.07B charge on OpenAI, Meta deals

AMD recorded a $1.07 billion noncash charge tied to warrants issued to AI customers OpenAI and Meta as part of agreements to buy its chips. The warrants could let each company acquire up to about 10% of AMD, but only after meeting specified shipment, commercial and other milestones. AMD says shareholder dilution would occur only if the conditions are met and the warrants are exercised, with more information on timing expected in 2027. The equity-linked deals are intended to secure substantial, long-term demand for AMD’s AI chips, including a five-year agreement to sell Meta as much as $60 billion worth.