AMD’s OpenAI, Meta chip deals trigger $1 billion quarterly charge

Advanced Micro Devices’ strategy of offering stakes in its future success to major AI customers OpenAI and Meta Platforms in exchange for big chip commitments is beginning to leave a sizeable imprint on its profits.

AMD in February agreed to sell up to $60 billion worth of AI chips to Meta over five years, giving the Facebook owner warrants that could let it buy as much as 10% of the chip firm if it meets certain milestones. The deal followed a similar agreement with OpenAI last year, giving the startup the option to buy up to roughly 10% of the chipmaker.