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US semiconductor manufacturer Advanced Micro Devices (AMD) has recorded a $1.07 billion non-cash accounting charge in its third-quarter results, linked to stock warrants granted under major artificial intelligence (AI) chip agreements with OpenAI and Meta Platforms.
According to a Reuters report published on November 4, 2026, the charge amounted to 66 cents per share and was recorded for the quarter ended September 26. It reflects the accounting value of warrants issued to the two companies as shipments under their agreements begin to increase.
Under the agreement announced in February, Meta has committed to purchasing up to $60 billion worth of AMD's AI chips over five years. The arrangement includes warrants that could allow Meta to acquire up to 10 per cent of AMD if specified commercial and performance milestones are achieved.
A similar agreement with OpenAI gives the AI company the option to acquire roughly 10 per cent of AMD through warrants, subject to specified conditions.
These arrangements are designed to strengthen long-term partnerships between chip manufacturers and major AI companies. However, they could also dilute the ownership of existing AMD shareholders if the warrants eventually vest and are exercised.
AMD's latest accounting charge comes as demand for AI processors and data-centre infrastructure continues to grow. The company has been expanding its product portfolio to compete with Nvidia, which remains a dominant supplier of AI chips.
The company's third-quarter performance also reflected this momentum. AMD reported revenue of $13.38 billion, up 45 per cent year-on-year, while revenue from its data-centre business increased 97 per cent to a record $8.55 billion.
The development highlights a changing relationship between semiconductor manufacturers and AI companies. Instead of relying only on conventional chip purchase agreements, companies are increasingly using equity-linked incentives to secure large-scale, long-term supply commitments.
According to a Reuters report published on November 4, 2026, the charge amounted to 66 cents per share and was recorded for the quarter ended September 26. It reflects the accounting value of warrants issued to the two companies as shipments under their agreements begin to increase.
Under the agreement announced in February, Meta has committed to purchasing up to $60 billion worth of AMD's AI chips over five years. The arrangement includes warrants that could allow Meta to acquire up to 10 per cent of AMD if specified commercial and performance milestones are achieved.
A similar agreement with OpenAI gives the AI company the option to acquire roughly 10 per cent of AMD through warrants, subject to specified conditions.
These arrangements are designed to strengthen long-term partnerships between chip manufacturers and major AI companies. However, they could also dilute the ownership of existing AMD shareholders if the warrants eventually vest and are exercised.
AMD's latest accounting charge comes as demand for AI processors and data-centre infrastructure continues to grow. The company has been expanding its product portfolio to compete with Nvidia, which remains a dominant supplier of AI chips.
The company's third-quarter performance also reflected this momentum. AMD reported revenue of $13.38 billion, up 45 per cent year-on-year, while revenue from its data-centre business increased 97 per cent to a record $8.55 billion.
The development highlights a changing relationship between semiconductor manufacturers and AI companies. Instead of relying only on conventional chip purchase agreements, companies are increasingly using equity-linked incentives to secure large-scale, long-term supply commitments.
