Meta to spend billions on AMD equipment, stock
Make us a preferred source
Make us a preferred source on Google
The news: Meta has struck a multi-billion dollar AI chip deal with Advanced Micro Devices (AMD), to deploy up to 6 gigawatts of the Nvidia rival’s graphics processing units (GPUs) for its AI data centres.
The numbers: Under the deal, AMD agreed to give Meta warrants to buy up to 160 million AMD shares, equating to roughly 10% of the company, for USD0.01 per share provided the company meets certain milestones.
The stock award is conditional on a rise in AMD’s share price, with Meta only set to receive the final tranche of shares after AMD’s stock reaches USD600 ($853.06). Its shares closed at USD196.60 on Monday.
Shares in AMD rose as much as 15% in premarket US trading, settling up 10% at 9:00am ET (1:00am AEDT Wednesday).
The context: The deal, valued at more than USD100 billion, includes the use of AMD’s AI-optimised central processing units. Shipments to support the first GPU deployments will begin in the second half of 2026, Meta said.
The deal comes just days after Meta committed to deploy millions of Nvidia processors and reflects the social media giant’s plans to increase its capital spending on AI and data centres to as much as USD135 billion this year.
What they said: Mark Zuckerberg, founder and CEO of Meta said in a statement: “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.”
“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, accelerating one of the industry’s largest AI deployments and placing AMD at the center of the global AI buildout”, said Lisa Su, chair and CEO of AMD.
