Deal covering up to 6 gigawatts of capacity signals deepening AI investment race
Meta Platforms(META) and Advanced Micro Devices (AMD) have entered into a sweeping multiyear agreement that will see Meta purchase up to 6 gigawatts’ worth of AMD AI chips as part of its aggressive artificial intelligence expansion. The partnership underscores the scale of Meta’s AI ambitions and positions AMD as a key supplier in the next phase of hyperscale data center growth.
Under the terms of the agreement, AMD will issue Meta 160 million shares of common stock, which will vest in tranches tied to performance milestones. The first tranche will vest once AMD ships its initial 1 gigawatt of chips. AMD’s stock surged as much as 10% in premarket trading following the announcement, reflecting investor enthusiasm over the long-term revenue potential.
The first wave of GPUs, AMD’s MI450 series, will be deployed in Meta’s Helios rack-scale data center systems later this year. These systems will integrate AMD’s EPYC CPUs, while Meta is also expected to purchase additional processors, including the Venice chip and next-generation Verano CPUs. As AI workloads increasingly shift toward inference and agentic AI services, CPUs are becoming a critical complement to GPUs in modern data centers.
The agreement comes just days after Meta signed a separate multiyear deal with Nvidia to supply millions of Blackwell and Rubin GPUs. Nvidia will also provide Grace CPU servers for large-scale deployment. Together, these partnerships highlight Meta’s strategy of diversifying chip suppliers while accelerating AI infrastructure deployment.
Meta plans to spend up to $135 billion in capital expenditures through 2026, contributing to an estimated $650 billion in combined AI spending by major tech firms including Amazon, Google, and Microsoft. While concerns about an AI investment bubble persist, analysts believe established chipmakers like AMD and Nvidia remain well positioned to benefit from sustained demand for high-performance AI processors.
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