# AMD’s OpenAI, Meta chip deals trigger $1 billion quarterly charge

- URL: https://talkfuse.com/story/amds-openai-meta-chip-deals-trigger-1-billion-quarterly-charge/
- Published: 2026-11-04T02:12:22+00:00
- Updated: 2026-11-06T06:57:22+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/amds-openai-meta-chip-deals-trigger-1-billion-quarterly-charge-6519501
- Topics: AI, Technology, World

## Key points

- AMD booked a $1.07 billion charge for customer warrants.
- OpenAI and Meta could each gain stakes of about 10 per cent.
- AMD expects faster-than-expected growth in 2027.

## Summary

AMD recorded a $1.07 billion non-cash charge linked to warrants offered to OpenAI and Meta as they commit to buying its AI chips. The charge shows how these deals are affecting AMD’s reported profits, while also highlighting the growing role of equity incentives in securing large, long-term AI orders.

AMD agreed to sell Meta up to $60 billion of chips over five years, with warrants that could give Meta as much as a 10 per cent stake; OpenAI has a similar option. The warrants carry share-price and commercial conditions, and could dilute existing shareholders if exercised. AMD forecast stronger-than-expected growth in 2027, helping lift its shares 8 per cent in extended trading, though analysts said Nvidia remains dominant.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.