{"id":824044,"date":"2026-11-04T16:28:10","date_gmt":"2026-11-04T16:28:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/824044\/"},"modified":"2026-11-04T16:28:10","modified_gmt":"2026-11-04T16:28:10","slug":"amds-ai-megadeals-with-openai-and-meta-just-cost-it-1-1-billion-chart-of-the-day","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/824044\/","title":{"rendered":"AMD’s AI megadeals with OpenAI and Meta just cost it $1.1 billion: Chart of the Day"},"content":{"rendered":"\n

OpenAI (OPAI.PVT<\/a>) and Meta (META<\/a>) could buy 320 million AMD (AMD<\/a>) shares for a penny apiece. That’s $3.2 million for stock worth about $155 billion, and AMD just got its first bill for the deal. <\/p>\n

The chipmaker beat Wall Street’s estimates<\/a> on Tuesday, with record data center sales of about $8.5 billion, nearly double a year ago, and a forecast of about $17 billion in fourth quarter revenue. The stock jumped as much as 9% in after-hours trading after closing at $484 before turning lower in premarket trading. <\/p>\n

But tucked into the results<\/a> was a $1.1 billion charge tied to that penny promise, which comes in the form of warrants<\/a> \u2014 contracts that let the holder buy a company’s stock at a set price. The charge came to $0.66 per share in the results. Last quarter, that line was zero. <\/p>\n

Here’s the deal: OpenAI and Meta each agreed to buy AMD chips for data centers drawing up to 6 gigawatts. That’s about five DeLoreans’ worth of the 1.21 gigawatts Doc Brown needed to time travel<\/a> in the 1985 movie “Back to the Future.” <\/p>\n

In return, each can buy up to 160 million shares at a penny. The shares unlock as the chips ship, and the final batch requires AMD’s stock to hit $600, according to company filings for OpenAI<\/a> and Meta<\/a>. Fully unlocked, the two would own about 16% of the enlarged company, by Yahoo Finance calculations. The Motley Fool ran the share-count math<\/a> in October. <\/p>\n

\"Line<\/a> AMD, Yahoo Finance <\/p>\n

So why now? AMD began booking the warrants as it shipped its new MI450 chips, CFO Jean Hu said on Tuesday’s call. The charge mostly reflected “the increase in our share price and the changes in the estimated probability of meeting the warrant conditions,” she said. The stock rose about 21% last quarter and finished on Sept. 25 at $630, above that $600 line. <\/p>\n

And the tab is likely to grow. Hu said she expects the charge “to increase as we and our customers progress under this agreement,” with amounts swinging on AMD’s stock price. Every rally and every chip shipment can add to it. <\/p>\n

It’s all on paper, though. The charges “will not affect our non-GAAP<\/a> results or free cash flow<\/a>,” Hu said. <\/p>\n

AMD is stocking up for a $17 billion quarter <\/p>\n

Meanwhile, AMD is loading up for what it expects to be its biggest quarter ever. Inventory jumped about $3 billion to a record $11.5 billion, four times the largest quarterly increase since at least 2009, according to Yahoo Finance calculations from company filings. <\/p>\n

\"Column<\/a> AMD filings, Yahoo Finance <\/p>\n

That build came at a price. Free cash flow shrank to about $550 million, compared with the nearly $2 billion analysts expected, according to Bloomberg. Debt more than doubled to about $7 billion after an August bond sale. <\/p>\n

The warrants do come with a consolation prize for shareholders. The shares only unlock if OpenAI and Meta keep buying chips and the stock keeps climbing. AMD says the buying is just getting started. <\/p>\n

“Based on our current visibility, we now expect revenue to grow more than 80% in 2027,” CEO Lisa Su said on the call. <\/p>\n

Internal AI tools helped analyze interview transcripts, research, and draft this post. Humans reviewed, edited, and fact-checked this post before publication. <\/p>\n

Follow Jared Blikre on X @SPYJared<\/a> or email him at jaredblikre@yahooinc.com. <\/p>\n","protected":false},"excerpt":{"rendered":"OpenAI (OPAI.PVT) and Meta (META) could buy 320 million AMD (AMD) shares for a penny apiece. That’s $3.2…\n","protected":false},"author":2,"featured_media":824045,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[11456,554,733,4308,84,273,1294,4176,5555,1086,13908,5467,4377,1891,4517,4174,4769,4655,4204,4762,5556,5557,3356,5042,474,86,13909,56,54,55],"class_list":["post-824044","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-401k","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-business","tag-business-news","tag-economy","tag-finance","tag-financial-information","tag-investing","tag-investment-tools","tag-investor","tag-market-news","tag-mortgage","tag-mutual-funds","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-technology","tag-track-portfolio","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/824044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=824044"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/824044\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/824045"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=824044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=824044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=824044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}