AMD Takes $1 Billion Charge From Meta and OpenAI Chip Deals
AMD agreed in February to sell up to $60 billion of AI chips to Meta over five years. Meta gets warrants that could let it buy up to 10% of AMD if milestones are met. A similar earlier deal with OpenAI led to a quarterly charge of about $1 billion.
Quick glossaryAMD, warrants, quarterly charge
- AMD
- A US chip maker, best known for its processors and graphics chips, competing with Intel and Nvidia.
- warrants
- A right that lets its holder buy company shares at a set price at a later date.
- quarterly charge
- A cost a company must record in one three-month period, lowering its reported profit for that period.
Burning Potato score: 71%