AMD warrants for OpenAI and Meta may dilute shares by 16%
AMD granted warrants to OpenAI and Meta for up to 320 million shares at $0.01 each, tied to the delivery of 12 gigawatts of AI chips. With AMD stock recently closing above the $600 threshold, these warrants are now financially viable, potentially increasing the total share count from 1.63 billion to 1.95 billion. This would dilute existing shareholders by approximately 16%, reducing each share's…
Key points
- AMD warrants for OpenAI and Meta cover 320 million shares at $0.01 each.
- Stock price exceeded the $600 threshold, making final warrant tranches viable.
- Full exercise would dilute existing shareholders by approximately 16%.
The warrants vest only as AMD delivers GPU capacity, with the final tranche requiring a $600 stock price. As of June 27, no shares had vested because initial shipments were scheduled for the second half of 2026. AMD’s data center revenue is growing rapidly, rising from $5.4 billion in Q4 2025 to $6.7 billion in Q2 2026. Management argues the deal is accretive to earnings, but analysts note the stock is already trading at high valuations relative to expected 2027 earnings.
If all warrants are exercised, OpenAI and Meta could own around 16% of the enlarged company. AMD’s buyback program is limited, with only $221 million executed in the first half of 2026. The pending acquisition of World Labs may add another 13 million shares. Investors are currently pricing in future gigawatt deliveries that AMD has yet to fulfill.
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AMD Has Promised OpenAI and Meta Up to 320 Million Shares for a Penny Each. Here's What That Does to the Share Count.
fool.com · 4 October 2026
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