AMD posts $1.07 billion charge after OpenAI and Meta deals
Business
AMD is making major moves in the AI world, but it's come at a price, a $1.07 billion charge last quarter.
Why? OpenAI and Meta struck deals to buy loads of AMD's AI chips, and as part of that, they can each grab up to 10% of AMD through equity.
It's a bold strategy that shows how serious these companies are about dominating the next wave of tech.
AMD bets on data center growth
Even with the risk of shareholder dilution, AMD is betting big on future growth, especially from booming data center sales, and expects things to speed up through 2027.
Investors seem to like this game plan: AMD shares jumped 8% after the news, and even rival stocks like Intel and Broadcom felt the impact.
Analysts are optimistic about AMD's place in AI, though NVIDIA still leads the pack for now.