AMD recorded a $1.07 billion non-cash charge, or 66 cents a share, in the third quarter ended September 26, to account for warrants granted to OpenAI and Meta.

The information comes from Reuters, in a text republished by StreetInsider. The company forecast faster-than-expected 2027 growth on surging data-center sales, and its shares rose 8% in extended trading. The warrants are part of a wave of equity incentives used by chipmakers to secure long-term purchases from a small group of AI customers: Cerebras granted OpenAI warrants against a $20 billion commitment, and Marvell issued warrants to Alphabet’s Google that give Google the right to buy a potential $12.2 billion stake.