Meta Inks Historic $100B+ Chip Deal with AMD, Secures Potential 10% Stake
Meta Platforms has announced a monumental multiyear agreement with Advanced Micro Devices (AMD) to purchase AI chips. The deal, potentially worth over $100 billion, stands as one of the largest chip deals in technology history. The partnership covers up to 6 gigawatts of computing capacity and includes AMD’s MI450 GPUs and next-generation CPUs.
In a unique twist to the deal structure, AMD has issued Meta a performance-based warrant. This allows Meta to acquire up to 160 million shares—approximately 10% of the company—for a mere $0.01 per share. The warrant vests as Meta’s chip purchases scale from 1 gigawatt to the full 6 gigawatts, with additional vesting tied to AMD’s stock price reaching $600. Shipments are expected to commence in the second half of 2026.
This agreement emerges just days after Meta committed to using millions of NVIDIA chips. This move showcases the social media titan’s strategy to diversify its AI chip supply chain. AMD CEO Lisa Su hailed the deal as “one of the most transformational” for the chipmaker. This is a significant step as AMD aims to challenge NVIDIA’s dominance in the AI accelerator market, where NVIDIA currently holds roughly 90% market share.
Source: CNBC