AMD books $1.1 billion charge tied to OpenAI and Meta deals
BROBROK News · Based on reporting by DiarioBitcoin ·
AMD recorded a $1.1 billion accounting charge linked to warrants issued in its chip supply agreements with OpenAI and Meta. The company said the item affects reported earnings, but not non-GAAP profit or free cash flow.
Key points
- The charge cut results by $0.66 per share.
- OpenAI and Meta may each buy up to 160 million AMD shares for $0.01 per share if conditions are met.
- AMD said the charge reflects share price moves and warrant conditions.
- Inventory reached a record $11.5 billion.
- Data center revenue was about $8.5 billion, nearly double a year earlier.
Why it matters
The deal structure highlights how AI chip partnerships can affect both reported earnings and future share dilution. It also underscores how strong demand for AI accelerators is shaping AMD's outlook.
Original headline: “AMD registra un cargo de USD $1.100 millones por sus acuerdos con OpenAI y Meta”
Read the original on DiarioBitcoin
Summary and analysis written by BROBROK News from the original report. Read the full story on the source website. Not investment advice.