A landmark quarter for AMD's AI business comes with an unusual accounting twist involving warrants granted to two of tech's biggest names.

Tue 3 Nov 2026 · 16:37 EST · 3 min read

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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 increase in AMD’s stock price or in the perceived likelihood of vesting will drive that liability higher, hitting GAAP earnings. That is exactly what happened in Q3. The company’s strong GPU demand and rising stock pushed the fair value of those warrants up, and AMD had to record the difference as a charge.

If all warrants were exercised, the dilution to existing shareholders would be approximately 19.6% of shares outstanding.

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The revenue underneath the noise

Total Q3 2026 revenue came in at $13.4 billion, a 45% increase year-over-year.

The engine driving that growth was the data-center segment, which generated $8.5 billion in revenue, representing a 97% jump compared to the same quarter a year earlier.

GAAP net income for the quarter was $2.43 billion. On a non-GAAP basis, net income reached $3.47 billion.

AMD also issued Q4 2026 revenue guidance of approximately $17 billion, plus or minus 3%.

The strategic logic behind the deals

AMD issued warrants to OpenAI and Meta tied to MI450 GPU purchase volumes, aligning the incentives of both parties. If those companies buy enough MI450 GPUs to trigger vesting milestones, AMD’s revenue grows substantially. The partners, in turn, receive equity upside in a company whose chips they depend on.

The Meta relationship goes one step further. AMD has committed to invest $1 billion in Meta’s equity offering, announced in late October 2026. The two companies are now financially entangled in both directions, with AMD holding Meta equity and Meta holding AMD warrants.

Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.

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