Meta Seals Monumental $100B AI Chip Agreement with AMD
In a landmark announcement on February 24, 2026, Meta Platforms has inked a multi-year contract with Advanced Micro Devices (AMD) to procure AI chips potentially exceeding a value of $100 billion. This deal entails the deployment of up to 6 gigawatts of AMD’s graphics processing units, specifically designed for artificial intelligence data centers.
As a significant part of this agreement, AMD has granted Meta a performance-based warrant. This allows Meta to acquire up to 160 million shares of AMD common stock—approximately 10% of the company. The vesting of this warrant is structured around specific milestones tied to chip shipments, with the first tranche vesting upon the deployment of the initial 1-gigawatt.
Meta is set to purchase AMD’s MI450 series GPUs, with the first gigawatt deployment’s shipments scheduled to commence in the latter half of 2026. Post the announcement, AMD’s stock experienced a surge of 7%, while CEO Lisa Su dubbed it as “one of the most transformational deals” for the chipmaker.
This development follows closely on the heels of Meta’s separate long-term partnership announcement with Nvidia. This move signals the company’s strategic intent to diversify its chip supply chain, aligning with CEO Mark Zuckerberg’s vision of “personal superintelligence”.
Source: CNBC