AMD issues warrants to OpenAI and Meta for massive GPU supply deals

AMD has entered into major GPU supply agreements with OpenAI and Meta, involving the issuance of warrants for up to 320 million shares. Under these deals, both companies have been granted warrants for up to 160 million shares each at a strike price of $0.01 per share. The vesting of these shares is contingent upon meeting specific GPU procurement milestones and AMD stock performance targets.

OpenAI is committed to deploying 6 gigawatts of AMD GPUs, with the first 1-gigawatt rollout of Instinct MI450 chips expected in the second half of 2026. Meta has a similar agreement for 6 gigawatts of capacity. For the OpenAI warrants, one of the key performance triggers is AMD’s stock price reaching $600 per share, a milestone the company has recently surpassed as its market valuation exceeded $1 trillion.

To meet this massive demand, CEO Lisa Su is traveling to Asia to secure manufacturing capacity. Her itinerary includes meetings with Foxconn and TSMC in Taiwan, as well as discussions with memory manufacturers Samsung and SK Hynix in South Korea. Su stated that while supply is being increased through 2026, the company intends to “substantially increase our supply in 2027.”