AMD's data center revenue rose 97% to a record $8.5 billion in the third quarter, per its earnings release, and it expects about $17 billion of total revenue in the fourth quarter, up 66% from a year earlier. Third-quarter revenue was $13.4 billion, up 45%.
The same release shows a $1.1 billion charge for remeasuring warrants AMD issued to certain customers, a cost that rises with AMD's share price. The best known is the one it gave OpenAI in October 2025, for up to 160 million shares at one cent each, vesting as OpenAI buys Instinct GPUs, per AMD's filing at the time. At about 1.66 billion diluted shares, implied by AMD's third-quarter results, the full 160 million would add close to a tenth to the share count, a dilution bill that grows as the stock rises.
The charge is why the two earnings lines split. GAAP net income was $2.43 billion. Adjusted net income, which excludes the warrant charge along with stock pay and acquisition costs, was $3.47 billion. The warrant line was blank in the second quarter.
The GPUs that trigger vesting are now shipping. AMD launched the Instinct MI450 in the quarter, and OpenAI's 2025 deal committed it to the first gigawatt of MI450 systems. AMD says Anthropic, Meta, Microsoft, OpenAI and Oracle are running workloads on its first Helios racks. Anthropic's IPO filing expects more than $20 billion of spending with AMD, as we noted on October 26.
Bottom Line
AMD is paying for its biggest AI customer partly in shares. The warrant charge can keep growing as MI450 shipments vest more of it and as the stock climbs, so read the adjusted and GAAP figures side by side.