Meta and AMD sign $100B AI chip deal

Meta and AMD signed a $100B deal for 6GW of AI chips. Meta may acquire up to 10% of AMD stock via performance-based warrants. AMD shares rose, Meta’s fell on capex concerns.

Meta Platforms and AMD have signed a landmark multi-year agreement valued at up to $100 billion. Under this deal, AMD will provide Meta with 6 gigawatts of AI computing power over five years, utilizing AMD’s MI450 GPU chips and custom CPUs designed for Meta’s AI workloads. The first gigawatt of chips is set for deployment in the second half of 2026. As part of the agreement, Meta will have the right to acquire up to 10% of AMD’s stock through performance-based warrants, which vest as AMD meets specific milestones and stock price targets. This structure mirrors a previous AMD deal with OpenAI and positions AMD as a direct competitor to Nvidia and Broadcom in the AI hardware space. The partnership is expected to significantly expand Meta’s AI infrastructure, with Meta planning to invest over $130 billion in AI expansion. Following the announcement, AMD’s share price surged, while Meta’s stock declined due to investor concerns over increased capital expenditures.