AMD's Chip Deals with OpenAI and Meta Are Costing It $1 Billion Per Quarter

At a glance

AMD has received large AI chip purchase commitments from OpenAI and Meta in exchange for giving them equity stakes. This strategy is now clearly affecting the company's earnings. With Meta, AMD agreed to supply up to $60 billion in chips over five years, and Meta also received the right to buy up to 10% of AMD's shares (warrants) if certain performance targets are met.

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