Meta Inks Record-Breaking $100B AI Chip Deal With AMD
Meta Platforms has announced a landmark multiyear partnership with Advanced Micro Devices (AMD) that could be worth up to $100 billion. This marks one of the most significant chip deals in the history of technology.
As per the agreement, Meta will deploy up to 6 gigawatts of AMD’s Instinct GPUs and latest-generation CPUs across its AI data centers. The first gigawatt, powered by custom AMD Instinct MI450-based GPUs, is set to begin shipments in the second half of 2026.
In a move that is unprecedented, AMD has issued Meta a performance-based warrant to acquire up to 160 million shares of AMD common stock at a mere $0.01 per share. This could potentially give Meta up to 10% ownership of the chipmaker. The warrant vests in tranches as Meta scales its purchases, with the final tranche requiring AMD’s stock price to hit $600. AMD shares saw a 7% increase on the news and closed at $196.60 on Monday.
This deal comes hot on the heels of Meta’s commitment to use millions of Nvidia processors just a week prior. This move highlights the company’s strategy to diversify its AI chip supply chain and reduce its dependence on Nvidia, which holds approximately 90% of the AI chip market. Meta CEO Mark Zuckerberg stated that the AMD partnership is “an important step” towards achieving “personal superintelligence” – AI systems designed to deeply understand and empower individuals in their everyday lives.
Meta has committed to invest a minimum of $600 billion in U.S. data centers and AI infrastructure over the coming years. This includes a projected capital expenditure of $135 billion in 2026 alone.
Source: TechCrunch