Prime Highlights
- Meta has signed a multiyear agreement with Advanced Micro Devices to deploy up to six gigawatts of AI chips across its data centers, one of the largest deals in the AI infrastructure sector.
- The deal includes performance-based warrants giving Meta the option to acquire 160 million AMD shares, roughly a 10% stake, tied to deployment and performance milestones.
Key Facts
- The partnership will use AMD’s MI450 GPUs in Helios rack-scale systems, with initial shipments expected later this year, alongside AI-optimized CPUs for large-scale model training and inference.
- Meta plans to operate 30 data centers, mostly in the U.S., and has committed up to $135 billion in capital spending this year to expand AI capacity.
Background
Meta has signed a multiyear agreement with Advanced Micro Devices to deploy up to six gigawatts of artificial intelligence chips across its data centers, marking one of the largest AI infrastructure deals in the sector.
The partnership will use AMD’s MI450 graphics processors in Helios rack-scale systems, with initial shipments scheduled to begin later this year. The agreement also covers AI-optimized central processing units to support large-scale model training and inference.
As part of the deal, Meta will receive performance-based warrants to buy 160 million AMD shares, roughly a 10% stake. The first portion will vest after AMD ships one gigawatt of Instinct GPUs, with further tranches linked to deployment levels, stock price targets, and technical milestones.
AMD chief executive Lisa Su described the pact as one of the most transformative in the company’s history, saying it supports an aggressive investment strategy in AI computing. Analysts estimate the contract could be worth tens of billions of dollars over several years due to the scale of deployment.
The announcement pushed AMD shares up about 7%, while Meta’s stock dipped slightly. Nvidia shares were largely unchanged. Nvidia remains the dominant AI chip supplier with around 90% market share and a market value of about $4.66 trillion, far ahead of AMD.
Industry analysts said the deal highlights strong demand for computing power and Meta’s strategy to diversify suppliers. Unlike Meta’s earlier Nvidia purchases, the first phase of the AMD rollout will involve customized GPUs, giving AMD a potential edge in securing large contracts.
Meta has committed up to $135 billion in capital spending this year as it races to expand AI capacity and compete with major players such as OpenAI and Anthropic. The company plans to operate 30 data centers, most of them in the United States.
AMD recently signed a similar warrant-based agreement with OpenAI, positioning itself as a growing alternative to Nvidia in hyperscale AI deployments. Meta also continues to develop its own chips and has explored using Google’s tensor processing units in future facilities.
The deal signals intensifying competition among chipmakers as global demand for AI infrastructure accelerates.
