Meta locks in $100B AI chips deal with AMD, secures option for 10% stake to fuel AI ambitions

Meta and AMD's Multibillion-Dollar Deal Is All About the AI Chips

Meta will take a stake in the chipmaker in exchange for a commitment to buy billions of dollars' worth of AI chips. Meta is joining OpenAI as one of the major tech companies to take a stake in chipmaker AMD, as part of an AI hardware buying frenzy. Meta and AMD on Tuesday announced a partnership that will involve CEO Mark Zuckerberg's tech giant buying billions of dollars' worth of AMD Instinct GPUs in order to fuel its ambitions to build out AI offerings across Meta platforms, including Instagram, Facebook and WhatsApp. In a release, Meta described the deal as "multi-year," and said the AI purchase will provide Meta with up to 6 gigawatts of AMD GPUs, "the silicon computing technology used to support modern AI models." According to the US Department of Energy, a single gigawatt (1 billion watts) is equivalent to nearly 2,000 large solar panels or 100 million LED bulbs. In AMD's version of the announcement, CEO Lisa Su said, "We are proud to expand our strategic partnership with Meta as they push the boundaries of AI at unprecedented scale." As part of the deal, Meta will take a 10% stake in AMD. AMD, based in Santa Clara, California, previously signed a deal with ChatGPT-maker OpenAI that it announced last October, which is similar to the Meta deal and also gives its AI rival 10% ownership of AMD. (Disclosure: Ziff Davis, CNET's parent company, in 2025 filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.) AMD's two megadeals may not have an immediate impact on people who use Meta's social networking and communications apps, or even on those who buy AMD's products, including desktop processors and graphics cards. But it signals that large companies making huge bets on the future of AI are doing what they can to secure the hardware they need as supplies tighten and prices rise for components such as RAM. Some of those constraints aren't expected to end anytime soon, and shoppers could begin to see prices rise even more than they already have for computers, smartphones, vehicles and other products that heavily rely on computing components like these. It is also a sign that Meta's ambitions for AI are not slowing down as it continues to compete with companies including OpenAI, Microsoft and Google to develop AI products and tools.

Watch Meta to Spend Billions of Dollars on AMD Gear, Buy Stock

Meta Platforms Inc. will deploy 6 gigawatts' worth of data center gear based on processors from Advanced Micro Devices Inc., a blockbuster deal that marks a win for the chipmaker's attempts to catch up with Nvidia Corp. Meta will buy AMD chips and computers designed to run artificial intelligence models over a five-year stretch, beginning in the second half of 2026. The series of transactions will be worth "double-digit billions" of dollars per gigawatt, according to AMD Chief Executive Officer Lisa Su. Bloomberg's Ed Ludlow joins to discuss with Paul Sweeney and Scarlet Fu.

Meta signs AI chips deal that could go up to $100 billion, option for 10% stake in AMD | Fortune

Facebook owner Meta Platforms will buy artificial intelligence chips from Advanced Micro Devices in a deal that will also give it the opportunity to buy up to a 10% stake of the chip company. News of the AMD deal comes just days after Meta announced a long-term partnership where it will use millions of chips and other equipment from Nvidia for its artificial-intelligence data centers. Meta will buy AMD's latest chips, the MI450, to help power data centers. The 6-gigawatt agreement will see shipments supporting the first gigawatt deployment set to start during the second half of this year. The agreement could potentially be worth more than $100 billion. AMD is looking to keep pace with Nvidia in the AI craze that's widely viewed as the biggest tectonic shift in technology since Apple co -- founder Steve Jobs unveiled the first iPhone. Nvidia carved out an early lead in tailoring its chipsets known as graphics processing units, or GPUs, from use in powering video games to helping to train powerful AI systems, like the technology behind ChatGPT and image generators. Demand skyrocketed as more people began using AI chatbots. Tech companies scrambled for more chips to build and run them. While the appetite for AI chips is still large, there are some concerns about how much companies like Meta are spending on AI and whether they can make back their huge investments through higher profits and productivity in the future. For Meta, the company has been pushing to revive its commercial AI efforts as the company faces tough competition from rivals such as Google and OpenAI, maker of ChatGPT. In June, the company made a $14.3 billion investment in AI data company Scale and recruited its CEO Alexandr Wang to help lead a team developing "superintelligence" at the tech giant. And in December, Meta bought artificial intelligence startup Manus, as the owner of Instagram continues an aggressive push to amp up AI offerings across its platforms. AMD issued Meta a performance-based warrant for up to 160 million shares of its common stock at $0.01 a piece, structured to vest as long as certain milestones are achieved. The first tranche vests with the initial 1-gigawatt of shipments, with additional tranches vesting as Meta's purchases scale to 6 gigawatts. Shares of AMD jumped more than 9% before the market open on Tuesday.

Meta diversifies its AI muscle beyond Nvidia with an AMD chip deal

Meta $META is buying itself options. The company said Tuesday that it has struck a multiyear, multi-generation agreement with AMD to deploy up to six gigawatts of AMD Instinct GPUs to power its next wave of AI infrastructure, with shipments supporting the first gigawatt expected to begin in the second half of 2026. On paper, this is a supply deal. In practice, this is a statement about leverage. "We're excited to form a long-term partnership with AMD to deploy efficient inference compute and deliver personal superintelligence," Meta CEO Mark Zuckerberg said in a press release. "This is an important step for Meta as we diversify our compute." That word -- "diversify" -- is doing the heavy lifting. Last week, Meta inked a massive multiyear pact with Nvidia $NVDA. Meta is building its own MTIA silicon. Now, Meta is locking in AMD at gigawatt scale. That's portfolio construction. AMD, for its part, is pitching more than just a chip. The initial deployment pairs the MI450-based GPU with 6th Gen EPYC CPUs, codenamed "Venice," running ROCm software and built into the Helios rack architecture. Meta will also be a lead customer for "Verano," a next-generation EPYC processor tuned for workload-specific performance. Lisa Su, AMD's chair and CEO, framed this as roadmap alignment across "Instinct GPUs, EPYC CPUs and rack-scale AI systems," placing AMD "at the center of the global AI buildout." Translation? AMD wants hyperscaler credibility at the highest level. Meta wants capacity, bargaining power, and a second supplier that can scale. AMD shares surged as much as 14% on the news as the market digested what a hyperscaler-scale customer does for a company that has been trying to graduate from "credible alternative" to "default second lane." This partnership leans into AMD's preferred framing: not a chip drop, a full-stack relationship -- silicon, systems, and software -- designed around a hyperscaler's workloads at datacenter scale. Then, there's the clause that has Wall Street leaning forward -- way, way forward. As part of the agreement, AMD issued Meta a performance-based warrant for up to 160 million shares of AMD common stock. The tranches vest as shipment milestones are achieved -- the first at one gigawatt, more as purchases scale toward six -- and are tied to stock-price thresholds and Meta hitting technical and commercial benchmarks. That's Meta turning a supplier relationship into an execution contract with equity attached. If AMD delivers, Meta gets a cheap path to meaningful ownership. If AMD slips, Meta doesn't just lose time; AMD loses upside. The structure makes one thing clear: In the AI hardware economy, reliability is now a feature you can put a price on. It's an unusual structure for a chip supply deal and a clear signal that this is about alignment as much as allocation. Jean Hu, AMD's CFO, said the partnership is expected to drive "substantial multi-year revenue growth" and be accretive to non-GAAP earnings per share, adding that the performance-based structure "tightly aligns AMD and Meta around execution and long-term value creation." The warrant mechanics immediately drag a second conversation into the room: dilution, optics, and whether "alignment" is also shorthand for "this took extra incentive to close." Both things can be true at once. Estimates floating through coverage put the deal's value anywhere from about $60 billion over five years to more than $100 billion, depending on whose math you trust and how aggressively you translate "gigawatts" into revenue. Meta and AMD didn't print a single clean total in the announcement, which leaves the market to do what it always does: argue about magnitude while the infrastructure gets ordered anyway. Regardless, that up-to-$100 billion looks like a drop in the bucket for a company that is throwing money at its AI projects. Meta is planning AI infrastructure spending that could reach as much as $135 billion this year. And between Meta's multiyear agreement for millions of Nvidia AI chips days ago and Tuesday's AMD news, the message is less romance than risk management: Meta wants more than one lane into the future, and it wants those lanes paved early. Right now, compute is scarce. Power is constrained. Nvidia's dominance is real. So Meta is hedging, booking, and building all at once. The six-gigawatt figure lands like infrastructure language because that's what it is: data centers, racks, electricity, long procurement cycles. Meta is building its AI empire under real-world constraints: power, delivery schedules, and the inconvenient fact that everyone wants the same hardware at the same time. This AMD partnership doesn't solve that problem. But it does formalize Meta's answer to it -- with a gigawatt target and a warrant-shaped enforcement mechanism. So AMD gets a marquee customer and a shot at becoming a default alternative. Meta gets more supply -- and a deal structure that tries to make late shipments someone else's problem, too.

AMD shares jump 8% on $100B+ AI chip deal with Meta - SiliconANGLE

Shares of Advanced Micro Devices Inc. rose 8% today after it announced plans to supply Meta Platforms Inc. with billions of dollars worth of chips. The Facebook parent will also receive the option to buy an up to 10% stake in AMD. As part of the deal, Meta has received a stock warrant that will allow it to purchase as many as 160 million of the chipmaker's shares for $0.01 apiece. Those shares will only vest if the companies' collaboration reaches certain performance milestones. Meta plans to buy a customized version of an upcoming graphics card called the MI450. Last year, AMD disclosed that the accelerator is based on Taiwan Semiconductor Manufacturing Co.'s 2-nanoometer process. Each MI450 ships with 432 gigabytes of high-speed HBM4 memory that can move 19.6 terabits of data per second to and from the processor's logic circuits. Meta plans to install the chips in racks based on a new design called Helios. The architecture, which the company developed in collaboration with AMD, features liquid cooling and a so-called double-wide layout designed to ease maintenance. Each Helios rack can hold up to 72 MI450 accelerators. Meta's chip deal with AMD will also see it adopt two upcoming central processing units codenamed Venice and Verano. The former CPU, which is set to launch first, is based on TSMC's 2-nanometer node. It will include workload-specific optimizations designed to boost power efficiency. AMD will begin shipping the chips to Meta in the second half of the year. The first batch of shares that Meta is set to receive will vest once the Facebook parent takes delivery of 1 gigawatt worth of chips. A gigawatt corresponds to the power usage of several hundred thousand homes. In the long term, Meta intends to purchase up to 6 gigawatts' worth of hardware from AMD. The final batch of shares will vest if all the planned orders materialize and the chipmaker's stock price tops $600. The Wall Street Journal reported that the deal's total value could top $100 billion. "We expect this partnership to drive substantial multi-year revenue growth and be accretive to our non-GAAP earnings per share, marking another significant step forward in delivering on our ambitious long-term financial model," said AMD chief financial officer Jean Hu. The deal comes four months after the chipmaker inked a similar contract with OpenAI Group PBC. Like Meta, the ChatGPT developer plans to purchase up to 6 gigawatts' worth of AI processors and will receive a stock warrant for 160 million shares. OpenAI's semiconductor procurement strategy also encompasses other suppliers, notably Nvidia Corp., as well as custom chips that it's developed in collaboration with Broadcom Inc. Meta is also partnering with multiple suppliers to support its data center buildout. Last Tuesday, the company inked a deal to buy millions of Blackwell and Rubin graphics cards from Nvidia. The Facebook parent expects to incur up to $135 billion in capital expenses this year, a more than 70% increase over 2025.

Meta signs 6GW AMD Instinct GPU deal, MI450 racks first wave

Meta has expanded its AI infrastructure roadmap with a multi-year agreement to deploy up to 6 gigawatts of AMD Instinct GPU capacity. The first phase is planned as a 1 gigawatt deployment based on a custom Instinct MI450 GPU platform, paired with AMD's next-generation EPYC server CPUs, codenamed "Venice." AMD also positions the rollout around its Helios rack-scale architecture, with ROCm providing the software stack for accelerator enablement. While the "6GW" headline is easy to focus on, the more interesting angle is the rack-scale framing. Rather than describing this as a loose collection of servers, AMD and Meta are leaning on a repeatable rack blueprint that can be replicated at scale. In hyperscaler deployments, that approach can reduce the time and cost of qualification, help standardize firmware and management tooling, and simplify operational workflows once the fleet is in production. It also influences decisions around networking topology, power delivery, cooling, and service access, all of which become major constraints when deployments grow by the rack row instead of by the server. The agreement also includes a performance-based warrant that can allow Meta to acquire up to 160 million AMD shares, contingent on milestone achievements tied to deployment and delivery progress. This structure effectively links part of the commercial upside to execution, which is an important consideration when the hardware ramp spans multiple years and platform lead times are long. Financial terms for the chip supply itself were not disclosed in the announcement. Meta's move should be seen as supply diversification rather than a single-vendor pivot. The company continues to buy AI compute from other major suppliers and is investing in internal silicon development as well. Adding AMD at a multi-gigawatt scale gives Meta another high-volume path for compute capacity, and the rack-level standardization message suggests Meta is trying to reduce integration overhead as it expands its AI footprint. For AMD, this places its next Instinct platform into a high-visibility hyperscaler deployment and reinforces its strategy of selling an integrated platform: GPU, CPU, rack architecture, and software. The big unknown is what comes after the initial 1GW MI450-based wave. The remaining capacity up to 6GW is part of a multi-generation agreement, but the later configurations and delivery timing were not detailed. That is typical for long-range infrastructure plans where component choices can shift with power budgets, packaging capacity, memory availability, and the cadence of new accelerator releases.

AMD and Meta sign massive AI deal, billions in chips, with Meta to own 10% of AMD

TL;DR: AMD and Meta have formed a multi-year partnership for Meta to deploy 6 gigawatts of AMD AI hardware, including Instinct GPUs and Helios architecture, to accelerate AI model development. Meta will also acquire up to a 10% stake in AMD, aligning their silicon, systems, and software roadmaps for scalable, energy-efficient AI infrastructure. AMD and Meta have announced a "multi-year, multi-generation partnership" that will see Meta deploy 6 gigawatts of AMD AI hardware, including various Instinct GPUs. This includes AMD's Helios rack-scale architecture optimized for Meta's AI workloads, which it plans to utilize to accelerate the deployment of new cutting-edge AI models. This partnership will also see the two companies align their roadmaps covering "silicon, systems, and software." With the first gigawatt expected to begin deployment later this year, the deal also includes Meta buying a stake in AMD, which could see it own around 10% of the company. This "performance-based warrant for up to 160 million shares of AMD common stock" has multiple milestones attached, and fully vests when Meta deploys all 6 gigawatts of AMD Instinct GPUs. "We are proud to expand our strategic partnership with Meta as they push the boundaries of AI at unprecedented scale," said Dr. Lisa Su, chair and CEO, AMD. "This multi-year, multi-generation collaboration across Instinct GPUs, EPYC CPUs, and rack-scale AI systems aligns our roadmaps to deliver high-performance, energy-efficient infrastructure optimized for Meta's workloads." For wondering about the sheer scale of this deal, 6 gigawatts is enough juice to power over five million homes. According to multiple sources, the deal will see the owner of Facebook and Instagram purchase around $60 billion in AI hardware from AMD. Interestingly, Meta also has deals with NVIDIA to buy large quantities of its hardware, as well as potentially partnering with Google to deploy its tensor processors (TPUs) for AI. "We're excited to form a long-term partnership with AMD to deploy efficient inference compute and deliver personal superintelligence," said Mark Zuckerberg, founder and CEO of Meta. "This is an important step for Meta as we diversify our compute. I expect AMD to be an important partner for many years to come."

AMD's MI450 Chip Just Landed Its First Mega-Deal. Here's What Investors Should Know.

As the artificial intelligence (AI) revolution enters its fourth year, demand for AI-capable chips continues at a blistering pace, yielding more than a few winners. While Nvidia controls the biggest share of the data center graphics processing unit (GPU) market, Advanced Micro Devices (AMD +10.06%) has no plans to cede the opportunity to its larger rival. As such, the company has taken a novel approach to attracting buyers for its high-end AI chips, which was on full display this week. AMD announced on Tuesday that it landed a multiyear, multigeneration deal with Meta Platforms (META +0.60%) that could be worth as much as $100 billion. Meta will deploy six gigawatts of custom AMD Instinct MI450 GPUs as part of a major data center build-out. This expands on the pair's existing partnership and "aligns roadmaps across silicon, systems, and software to deliver AI platforms purpose-built for Meta's workloads." The MI450 chips and Helios rack-scale servers are scheduled to begin shipping later this year. At what cost? Perhaps more importantly to AMD shareholders, the company issued Meta a performance-based warrant that would allow Meta to buy up to 160 million shares of AMD common stock. If exercised, Meta could own up to 10% of AMD's outstanding stock. AMD struck a similar six-gigawatt deal with OpenAI late last year, which gave the start-up the option to purchase up to 160 million shares at $0.01 per share, giving OpenAI a 10% stake in AMD. AMD CEO Lisa Su said the way the deal was structured was a "win-win" for shareholders. She went on to say, "We're early in the cycle of seeing what the ultimate payoff can be ... We have to invest ahead of the curve and really point in the direction that is going to have the largest benefit." This is not an exclusive arrangement, and it's important to step back and put it in context. The deal comes in the wake of an agreement revealed just last week in which Meta announced a multiyear, multigenerational partnership with Nvidia -- AMD's larger competitor -- in a large-scale deployment of Nvidia CPUs and "millions of Nvidia Blackwell and Rubin graphics processing units (GPUs), as well as the integration of Nvidia Spectrum-X Ethernet switches." The agreement is part of Meta's rapid hyperscale data center build-out, optimized for both AI training and inference. It also helps illustrate that while Meta's deal with AMD is certainly a vote of confidence, it also underscores that it's by no means exclusive. On the one hand, this deal aligns Meta's interest with AMD and increases the likelihood of future chip sales. On the other hand, it raises the question of whether AMD is giving away too much to secure these deals. The warrants in question are good until 2031, so they won't dilute existing shareholders until they are exercised. However, if Meta and OpenAI both exercise their warrants, it would dilute existing shareholders by 20%. It also represents one of the circular deals that has been attracting scrutiny from AI investors. Is this a shrewd business arrangement, or is AMD giving away the store? That depends a great deal on whether AMD is done doing deals for shares. Only time will tell.

AMD and Meta Expand Partnership to Deploy 6 Gigawatts of AI-Optimized GPUs Globally

This agreement expands on the companies' existing strategic partnership and aligns roadmaps across silicon, systems and software to deliver AI platforms purpose-built for Meta's workloads. The first deployment will use a custom AMD Instinct GPU based on the MI450 architecture to deliver AI platforms that are optimized for Meta's workloads at gigawatt-scale. Shipments supporting the first gigawatt deployment are scheduled to begin in the second half of 2026 powered by the custom AMD Instinct MI450-based GPU and 6 Gen AMD EPYC™ CPUs, codenamed "Venice," running ROCm™ software and built on the AMD Helios rack-scale architecture. AMD Helios was developed jointly by AMD and Meta through the Open Compute Project to enable scalable, rack-level AI infrastructure.

Meta, AMD Sign $100Bn Deal on Chips to Curtail Over-reliance on Nvidia

While Meta has a mega deal with Nvidia too, AMD too has signed chip deals with OpenAI, indicating that the circular deals are still the name of the game Meta's plan to reduce Reliance on Nvidia chips shifted a gear with the company announcing that it could potentially acquire up to $100 billion worth of processors from rival AMD that could drive around 6GW of datacentre power demand. The company made this announcement on Tuesday, resulting in a bump up to AMD stock prices (from $196 to 216) and Nvidia stocks depicting a marginal dip from $192 to about $187 a share. The multiyear agreement will see AMD issue Meta with a performance-based warrant for up to 160 million shares of AMD common stock (nearly 10% of the company) at $0.01 each, structured to vest alongside certain milestones. The catch here is that the full stock award would be conditional to the AMD stock hitting $600 a share, according to a report published by the Wall Street Journal. Meta would acquire AMD MI540 series of GPUs and the latest CPUs, which are now becoming a core pillar for AI inference compute stack due to their efficiencies and easier scalability. In a statement made during an investor briefing, AMD CEO Lisa Su said "The CPU market is absolutely on fire. There is significant demand. It has continued to grow, and it really is a result of the AI infrastructure deployments as inferencing scales, as agentic AI scales, and our portfolio is in an extremely good position." In recent times, AMD has slowly gained some ground as AI firms are increasingly seeking to reduce reliance on Nvidia, the market leader in AI chips, which resulted in the company charging a premium. In October last year, OpenAI also did a similar deal with AMD whereby it traded equity to a buying agreement for chips. According to Meta CEO Mark Zuckerberg, the company's partnership with AMD would an crucial step in the future as it allows him to diversify their compute strategies and work towards creating "personal superintelligence, which the Facebook founder has defined as AI systems that can deeply understand and empower individuals in their daily routines. Just as AMD did other deals with AI giants, Meta too has done multiyear deals to expand its datacentres with millions of Nvidia CPUs and GPUs. In addition, the company was also in talks with Google for its TPUs besides working on designing some chips of their own.