AMD Grants OpenAI and Meta Warrants for Up to 320 Million Shares at $0.01 Each
Advanced Micro Devices (AMD) has granted warrants to both OpenAI and Meta Platforms, allowing them each the right to purchase up to 160 million shares of AMD stock at a price of just one cent per share. These warrants are tied to GPU purchases measured in gigawatts rather than chip counts, with full vesting contingent on reaching six gigawatts for each company. AMD's stock has already surpassed $600, triggering the final tranche conditions under these agreements. If all 320 million shares were exercised, it would significantly increase AMD’s share count from approximately 1.63 billion to nearly 1.95 billion outstanding shares. This could dilute current shareholders by about 16%. Despite potential buybacks and a pending acquisition of World Labs adding more shares, the warrants remain contingent on GPU shipments. The deal is expected to be highly profitable for AMD despite share dilution, with CEO Lisa Su estimating revenue from these sales in double-digit billions. The data center segment has shown strong growth, increasing by over 16% sequentially in Q2 of 2026.
Topics: Advanced Micro Devices (AMD) Meta Platforms (META) OpenAI Stock Price Thresholds Warrant Vesting Conditions