AMD's AI blowout comes with a $1.1B warrant bill for OpenAI and Meta

AMD's AI engine is roaring. The chipmaker posted record Q3 2026 revenue of $13.4 billion, a 45% jump from the same quarter last year, with data-center sales nearly doubling to $8.5 billion. Then came the footnote that stole the show: a $1.097 billion non-cash charge tied to warrants owed to OpenAI and Meta.

The charge isn't cash walking out the door — it's accounting math. AMD handed OpenAI warrants in October 2025 and Meta more in February 2026, each covering up to 160 million shares at an exercise price of $0.01. Under the rules, those liabilities get marked to market every quarter, so AMD's rising stock price and scorching MI450 demand pushed their fair value higher, and the difference hit the books.

The dent landed on GAAP earnings. Diluted earnings per share took a $0.66 hit, coming in at $1.46 for the quarter. Strip out the accounting adjustment and non-GAAP EPS was $2.09. Net income settled at $2.43 billion on a GAAP basis and $3.47 billion on a non-GAAP basis.

Nobody has cashed in yet. As of June 27, 2026, none of the warrants had vested. They hinge on AMD's MI450 GPU purchase volumes and stock performance milestones, including a final target that requires AMD's share price to reach $600. If every warrant were exercised, existing shareholders would face dilution of roughly 19.6% of shares outstanding.

The structure is deliberate: it ties OpenAI's and Meta's incentives to how many MI450 GPUs they buy. Hit the vesting milestones, and AMD's revenue swells while its partners pocket equity upside in a company whose chips they lean on. AMD guided Q4 2026 revenue to about $17 billion, give or take 3%.

The Meta relationship runs both directions. AMD has committed $1 billion to Meta's equity offering, announced in late October 2026, meaning AMD holds Meta stock while Meta holds AMD warrants. Call it a very expensive friendship — with the bill still being tallied.