The growing demand for ai infrastructure is reshaping partnerships between technology companies and chipmakers. Advanced Micro Devices (AMD) has recorded a significant financial impact from its strategic agreements with OpenAI and Meta, reporting a $1.07 billion non-cash charge in its 3rd-quarter results.
The charge, equivalent to 66 cents per share, is linked to warrants granted to both companies as part of long-term AI chip supply agreements. The accounting adjustment comes as shipments under these agreements begin to increase.
OpenAI and Meta deals offer potential stakes in AMD
In February 2026, AMD agreed to supply Meta with up to $60 billion worth of AI chips over 5 years. As part of the agreement, Meta received warrants that could allow it to acquire up to 10% of AMD if specific milestones are achieved.
A similar agreement was signed with OpenAI in 2025, giving the AI company the option to acquire approximately 10% of the chipmaker. OpenAI’s agreement also includes AMD share-price thresholds, while Meta’s does not.
If the warrants fully vest and are exercised, both companies could acquire significant stakes in AMD at a nominal price, potentially increasing the company’s total share count and diluting existing shareholders. Their eventual value will depend on AMD’s share price when the warrants are exercised.
AMD expects further guidance on shareholder dilution
AMD Chief Financial Officer Jean Hu said the warrants would begin affecting existing shareholders once OpenAI and Meta meet the required vesting and exercise conditions. These include chip shipment targets and other commercial requirements.
The company expects to provide more clarity in 2027 on when these conditions could be met.
Growing trend of equity-linked AI partnerships
AMD’s arrangements reflect a wider industry trend in which chipmakers and AI infrastructure companies offer equity-linked incentives to secure large, long-term purchase commitments.
Cerebras has granted OpenAI warrants linked to a $20 billion commitment, while Marvell has issued warrants to Google that could enable a potential $12.2 billion stake. Qualcomm has also provided Amazon with warrants as part of a $60 billion agreement for AI data-centre chips.
Analysts view AMD’s agreements as a sign of confidence in its AI chips and software. However, they believe these partnerships are unlikely to immediately challenge Nvidia’s market leadership, as demand for its chips remains strong.
AMD also forecast faster-than-expected growth in 2027, supported by rising data-centre demand. Its shares gained 8% in extended trading, alongside gains in other major chipmakers.
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