 in a deal valued at more than $100 billion, marking one of the largest AI infrastructure agreements to date.){kind=link}
Meta Platforms has agreed to purchase up to 6 gigawatts of artificial intelligence computing power from Advanced Micro Devices (AMD) in a deal valued at more than $100 billion, marking one of the largest AI infrastructure agreements to date.
The partnership will center on AMD’s next-generation MI450 AI chips, which Meta plans to deploy in data centers over the next five years. The first gigawatt of computing capacity is expected to come online later this year.
Stock Incentives and Strategic Partnership
As part of the agreement, AMD will grant Meta warrants to buy up to 160 million shares—roughly 10% of the company—at a nominal price if performance milestones are met. The full award depends on AMD’s stock reaching $600 per share, far above its recent closing price near $196.
The deal highlights AMD’s strategy under CEO Lisa Su to compete more aggressively with rivals like Nvidia in the booming AI chip market.
Meta Expands Massive AI Spending
Meta continues to ramp up AI investment as it builds infrastructure for large language models and advertising optimization. CEO Mark Zuckerberg previously said the company plans to deploy tens of gigawatts of computing capacity this decade, with spending projected to reach up to $135 billion this year alone.
The AMD partnership also introduces customized AI chips tailored for Meta’s needs—particularly for inference workloads, where AI systems generate responses to user requests.
Intensifying AI Chip Competition
The agreement positions AMD more directly against custom-chip leader Broadcom while also challenging Nvidia’s dominance in high-performance GPUs.
Meta recently confirmed it will continue buying Nvidia chips as well, signaling a multi-supplier strategy as demand for AI computing power accelerates across the tech industry.
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