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

AMD booked a $1.1 billion non-cash charge in its latest quarter tied to warrants granted to OpenAI and Meta, even as data-center revenue nearly doubled year over year. The charge reflects accounting treatment of the equity-linked incentives rather than cash outflows, but it highlights the dilution risk tied to AMD's strategic AI partnerships. The data-center segment's strong growth underscores how heavily the chipmaker's results now hinge on AI infrastructure demand from a handful of hyperscale customers. Investors will watch how the warrant obligations evolve as OpenAI and Meta scale their compute buildouts, and whether dilution pressures offset the revenue gains from those relationships.