By Daragh Thomas
Publication Date: 2026-11-04 17:54:00
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Advanced Micro Devices Inc. (NASDAQ:AMD) is taking on billions of dollars in potential financial obligations to help customers build AI data centers, as it steps up its challenge to Nvidia Corp. (NASDAQ:NVDA).
AMD’s lease guarantees jumped 88% in just three months, from $4.1 billion in June to $7.7 billion in September. Another $750 million in debt guarantees brings the total potential exposure to approximately $8.5 billion.
If its partners run into financial trouble, AMD could be on the hook for as much as $8.5 billion.
AMD has also signed another $13.3 billion in data-center leases that haven’t started yet. It plans to pass the facilities on to partners, but could still be left paying the rent if those partners can’t.
Why AMD Is Backing Data Centers
AMD is helping customers secure data centers where its chips can be installed, potentially generating billions in future sales.
On Tuesday’s earnings call, Bank of America analyst Vivek Arya questioned whether customers had sufficient financing, land and power to support roughly 3 gigawatts of planned AMD deployments in 2027.
CEO Lisa Su said AMD was working closely with customers to prepare infrastructure years in advance.
“We know where the GPUs are going in terms of which data centers and which locations,” Su said, adding that…
