Meta Secures Monumental $60 Billion AI Chip Deal with AMD
In a historic announcement on February 24, 2026, Meta Platforms revealed a substantial multi-year agreement with AMD. This deal involves the purchase of up to $60 billion worth of AI chips over the next five years. Additionally, it includes an unprecedented equity component, offering Meta the choice to acquire up to a 10% stake in AMD.
As part of the agreement, AMD commits to delivering 6 gigawatts of AI computing capacity to Meta. This delivery will commence with its MI450 GPU platform in the latter half of 2026. Lisa Su, AMD CEO, equated each gigawatt deployment to “double-digit billions” of dollars. The deal also encompasses performance-based warrants, permitting Meta to purchase 160 million AMD shares at a mere $0.01 each as shipment milestones are achieved.
This partnership signifies Meta’s strategic move to diversify its AI chip suppliers beyond Nvidia, thereby reducing dependency on a single vendor. Santosh Janardhan, Meta’s Infrastructure Chief, expressed the company’s belief that “a single silicon solution will not suffice for all of our workloads.” Following the announcement, AMD shares experienced an 8.8% surge, closing at $213.84.
Source: Electronics Weekly