AMD records $1.1B non-cash charge tied to OpenAI and Meta warrants as data-center revenue nearly doubles

A landmark quarter for AMD's AI business comes with an unusual accounting twist involving warrants granted to two of tech's biggest names. AMD posted record quarterly revenue in Q3 2026, but the headline number came with a footnote that raised eyebrows: a $1.097 billion non-cash charge tied to warrant liabilities connected to OpenAI and Meta. The charge reduced AMD’s GAAP diluted earnings per share by $0.66, bringing it to $1.46 for the quarter. Strip out that accounting adjustment and the picture looks considerably rosier, with non-GAAP EPS coming in at $2.09. What actually happened with the warrants AMD issued warrants to OpenAI in October 2025 and to Meta in February 2026, each covering up to 160 million shares at an exercise price of $0.01 per share. At that price, those warrants are almost pure value the moment they vest. The vesting, however, is not guaranteed. The warrants are tied to AMD’s MI450 GPU purchase volumes and specific stock performance milestones, including a final target requiring AMD’s share price to reach $600. As of June 27, 2026, none of the warrants had vested. Because warrant liabilities have to be marked to market each quarter under accounting rules, any ...