WORLDTECHAMD books $1.1B non-cash charge over OpenAI and Meta warrants
According to Crypto Briefing, AMD booked a $1.1 billion non-cash charge linked to warrants it granted to OpenAI and Meta, a charge that pulled GAAP diluted earnings per share down to $1.46. The same quarter saw its data-center segment revenue climb 97%.
Charge trims reported per-share earnings
Crypto Briefing reports that the charge reduced AMD's GAAP diluted earnings per share by $0.66, leaving it at $1.46 for the quarter. Without that accounting adjustment, non-GAAP earnings per share would have been $2.09.
Growth came mainly from the data-center segment, which brought in $8.5 billion, a jump of 97% from the same quarter a year earlier.
Terms of the OpenAI and Meta warrants
AMD issued a warrant to OpenAI in October 2025 and another to Meta in February 2026. Each covers up to 160 million shares at an exercise price of $0.01, so once a warrant vests it is worth close to its full share value.
Vesting is linked to purchase volumes of AMD's MI450 GPU, a chip designed to run many calculations simultaneously and used for graphics and AI, and to share-price milestones, the final one requiring AMD's stock to hit $600. As of June 27, 2026, none of the warrants had vested.
Why the warrants weigh on GAAP results
Under accounting rules, warrant liabilities are revalued to market every quarter, so a higher share price or a greater perceived chance of vesting lifts the liability and cuts GAAP earnings. According to the report, strong demand for AMD's GPUs and a rising stock lifted the fair value of the warrants, and the difference had to be booked as a charge.
If every warrant were exercised, existing shareholders would be diluted by roughly 19.6% of shares outstanding.
Open questions
- Will the MI450 purchase volumes and share-price targets that trigger the warrants be reached?
- How much will the warrant liability move in future quarters?