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Why AMD’s OpenAI and Meta Warrants Cost $1.07 Billion in Q3
AMD recorded a $1.07 billion non cash charge, or 66 cents per diluted share, as shipments under its OpenAI and Meta agreements began to ramp. AMD’s reported Q3 revenue was $13.4 billion, up 45% year over year, while diluted EPS was $1.46 on a GAAP basis and $2.09 on a non GAAP basis.
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Key takeaways
- AMD recorded a $1.07 billion non cash charge, or 66 cents per diluted share, as shipments under its OpenAI and Meta agreements began to ramp.
- AMD’s reported Q3 revenue was $13.4 billion, up 45% year over year, while diluted EPS was $1.46 on a GAAP basis and $2.09 on a non GAAP basis.
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openai.comCreate a landscape editorial hero image for this Studio Global article: Why did AMD record its first profit impact from its OpenAI and Meta warrant agreements—a $1.07 billion non-cash charge, or 66 cents per shar. Article summary: AMD’s first earnings hit reflected the accounting cost of customer warrants as shipments under its OpenAI and Meta agreements began ramping—not a $1.07 billion cash payment. The reported charge was $1.07 billion, or 66 c. Topic tags: general, general web, user generated. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts with fa
AMD’s first reported earnings impact from its OpenAI and Meta chip agreements was a $1.07 billion non-cash charge, equal to 66 cents per diluted share, for the quarter ended September 26, 2026. The charge was tied to warrants issued as part of the deals; it was not a $1.07 billion cash payment.1
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Why the charge appeared in Q3
A warrant gives its holder the right to buy shares at a set price. AMD’s agreements give OpenAI and Meta warrants for up to 160 million AMD shares each, at one cent per share, subject to conditions.1
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The charge emerged as shipments connected to the agreements began to ramp. Reports linked the period to shipments of AMD’s MI450-series accelerators, though the available reporting does not establish that MI450 shipments alone caused the charge.4
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AMD’s finance chief linked the warrant cost to movements in AMD’s share price and the estimated likelihood that the customers would meet the warrant terms.4 In other words, the accounting value of the rights can change as those valuation inputs change; the charge does not mean the customers had already received shares.
How the charge fits AMD’s earnings
AMD reported Q3 revenue of $13.4 billion, up 45% year over year. Diluted earnings per share were $1.46 under GAAP and $2.09 on a non-GAAP basis.2
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The 66-cent warrant impact is close to, but not the same as, the 63-cent difference between those two EPS figures. The reported GAAP-to-non-GAAP difference also reflects other adjustments, so the warrant charge alone does not fully reconcile the two figures.2
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The charge was non-cash: it reduced reported earnings but did not represent cash paid out in the quarter.17 Adjusted earnings exclude the warrant revaluation, alongside other adjustments.
14 That distinction helps explain how AMD could report the charge while also presenting higher non-GAAP EPS.
What could change the charge—and what could dilute shareholders
AMD’s warrant-related accounting costs may vary from quarter to quarter as the value of the warrants is reassessed. Reporting on the CFO’s comments points to AMD’s share price and the projected likelihood of customers meeting the conditions as relevant factors; one report said AMD expected quarterly fair-value adjustments to increase.4
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The accounting charge and share dilution are separate events. The charge reflects the warrants’ accounting value; dilution would arise if shares were eventually issued after the relevant conditions were met. OpenAI and Meta can each acquire up to 160 million shares, but the maximum amounts are not current ownership stakes.1
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The deals show the trade-off in AMD’s customer strategy: warrants accompany major chip commitments, but they can affect reported earnings before any warrant shares are issued, and could dilute existing shareholders if the terms are fulfilled.5
15 The available reporting does not establish enough detail to map every vesting and exercise condition or predict exactly when dilution would occur.
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What is the short answer to "Why AMD’s OpenAI and Meta Warrants Cost $1.07 Billion in Q3"?
AMD recorded a $1.07 billion non cash charge, or 66 cents per diluted share, as shipments under its OpenAI and Meta agreements began to ramp.
What are the key points to validate first?
AMD recorded a $1.07 billion non cash charge, or 66 cents per diluted share, as shipments under its OpenAI and Meta agreements began to ramp. AMD’s reported Q3 revenue was $13.4 billion, up 45% year over year, while diluted EPS was $1.46 on a GAAP basis and $2.09 on a non GAAP basis.