Meta intends to acquire a substantial quantity of AMD chips, potentially valued at $100 billion, which would support approximately six gigawatts of data center power, as jointly revealed by the companies on Tuesday.
Under this multiyear contract, AMD has granted Meta a performance-linked warrant for as many as 160 million shares of its common stock — representing approximately 10% of AMD — at a price of $0.01 per share. This warrant is structured to vest upon the achievement of specific milestones. The complete stock award hinges on AMD’s stock price reaching $600 for Meta to obtain the final portion, as reported by The Wall Street Journal. On Monday, AMD’s stock concluded trading at $196.60.
As per the terms of the deal, Meta is set to acquire AMD’s MI540 series GPUs and their newest generation of CPUs. CPUs are progressively becoming a crucial component in AI inference computing due to their efficiency, scalability, and the advantage of not exclusively binding companies to Nvidia.
During an investor briefing on Tuesday morning, AMD CEO Lisa Su stated, “The CPU market is experiencing immense growth. Demand is substantial and has been steadily increasing, primarily driven by AI infrastructure deployments as inferencing and agentic AI expand, positioning our product portfolio exceptionally well.”
AMD has been steadily expanding its market share as AI companies seek to decrease their dependence on Nvidia, the long-established dominant player in AI chips known for its premium pricing. In a comparable arrangement last October, AMD and OpenAI reached a deal involving equity in exchange for a chip purchase agreement.
Mark Zuckerberg, Meta’s CEO, described the collaboration with AMD as a “significant advancement” in the company’s efforts to diversify its computing resources and progress toward “personal superintelligence.” Zuckerberg defines personal superintelligence as AI systems engineered to profoundly comprehend and assist individuals in their daily existence.
Meta has committed to investing a minimum of $600 billion in U.S. data centers and AI infrastructure over the coming years, with a projected capital expenditure of $135 billion in 2026. The company recently announced plans for a $10 billion gas-powered data center campus in Indiana, intended to provide 1 gigawatt of computing capacity.
This collaboration with AMD follows a multiyear agreement Meta made a few weeks prior to enhance its data centers with millions of Nvidia’s newest CPUs and GPUs. The company behind Facebook is also developing its own proprietary chips, though it has reportedly encountered setbacks.
Additional details from AMD CEO Lisa Su have been incorporated into this article.