AMD has given OpenAI and Meta Platforms the right to buy up to 320 million AMD shares at a penny each, tied to massive GPU purchase commitments. Full exercise would expand AMD's share count by roughly 19.6%, but vesting depends on both purchase milestones and AMD's stock hitting a $600 target.
Advanced Micro Devices has handed OpenAI and Meta Platforms the right to buy up to 320 million AMD shares for one cent apiece. Both companies have to earn the shares by buying massive amounts of AMD hardware and by watching AMD's stock climb to rising price targets.
How the penny-share deals work
AMD issued the first warrant to OpenAI on October 5, 2025, and Meta received a matching one on February 23, 2026. Each warrant covers up to 160 million shares at an exercise price of $0.01 per share, and both expire in five years.
A warrant works like a coupon for stock: the holder can redeem it at a fixed price, but only if certain conditions are met. Here, the conditions are tied to compute. Each customer has committed to purchase up to 6 gigawatts of AMD's Instinct MI450-series GPUs over roughly five years, with the first 1 gigawatt tranche expected to start shipping in the second half of 2026.
Vesting happens in stages as customers hit purchase milestones and as AMD's stock price clears a series of rising targets, the last of which sits at $600. As of AMD's mid-2026 SEC filings, none of the warrants had vested, so the penny shares remain a promise rather than a transfer.
What full exercise would do to the share count
AMD had about 1.63 billion shares outstanding as of late July 2026, against 4 billion authorized shares in total. If both warrants were fully exercised, the 320 million new shares would boost the outstanding count by roughly 19.6%.
The cash AMD would collect is small by comparison: full exercise would bring in approximately $3.2 million. With AMD trading between $600 and $630 in September 2026, the exercisable shares would carry a paper value of approximately $192 billion to $202 billion, contingent on the purchase milestones being met.
Why AMD is giving away this much equity
AMD wants a bigger share of the AI accelerator market, where Nvidia has long been the incumbent. Winning that fight requires anchor customers willing to commit to multi-year, multi-gigawatt deployments.
The stock-price targets also protect existing shareholders to a degree, since the final tranche only unlocks if AMD reaches $600. That target is no longer hypothetical: AMD's run to the $600 to $630 range in September 2026 pushed its market capitalization past $1 trillion.
Vesting depends on execution on both sides, AMD's ability to deliver MI450-series chips on schedule and the customers' ability to deploy them. Investors should watch AMD's future SEC filings for the first signs of vesting, the clearest indication that the penny shares are turning from a contractual promise into actual dilution.
Source: Crypto Briefing
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