AMD books $1.1 billion charge for warrants tied to OpenAI and Meta chip deals

AMD recorded a $1.07 billion non-cash charge, or 66 cents a share, in the third quarter to account for warrants it granted OpenAI and Meta in exchange for multibillion-dollar AI chip commitments, Reuters reports. Each customer can buy up to 160 million AMD shares at a penny apiece as GPU shipments and share-price milestones are hit; AMD began booking the cost as MI450 shipments ramped. CFO Jean Hu said the charge mainly reflected AMD's rising stock price and will grow as the deals progress, though it does not affect non-GAAP results or free cash flow.