Meta is poised to acquire an impressive volume of chips from AMD, potentially valued at up to $100 billion, an investment projected to fuel approximately six gigawatts of its data center power requirements, as jointly announced by the companies on Tuesday.
This multiyear agreement includes a performance-based warrant issued by AMD to Meta, granting the social media giant access to up to 160 million shares of AMD common stock—equating to about 10% of the company—for a symbolic price of $0.01 per share. The vesting of these shares is structured around specific milestones. As reported by The Wall Street Journal, the full stock award is contingent on AMD’s share price reaching $600 for Meta to receive its final tranche; AMD’s stock closed at $196.60 on Monday.
Under the terms of this deal, Meta will procure AMD’s MI540 series of GPUs and its latest generation of CPUs. CPUs are increasingly recognized as a crucial component of the AI inference compute stack, lauded for their efficiency, ease of scalability, and their role in preventing companies from becoming solely reliant on Nvidia.
AMD has been steadily gaining traction as AI firms actively seek to reduce their dependence on Nvidia, which has long been the dominant leader in AI chips and has historically commanded a premium for its market position. This strategic move by Meta mirrors a similar agreement struck last October between AMD and OpenAI, which involved trading equity for a commitment to purchase chips.
Mark Zuckerberg, CEO of Meta, stated that the company’s partnership with AMD represents "an important step" as it diversifies its computing capabilities and advances towards its ambitious goal of "personal superintelligence." Zuckerberg defines personal superintelligence as AI systems designed to deeply understand and empower individuals in their everyday lives.
Meta has pledged a substantial investment of at least $600 billion in U.S. data centers and AI infrastructure over the coming years, including a projected capital expenditure of $135 billion in 2026 alone. The company recently unveiled plans for a $10 billion gas-powered data center campus in Indiana, designed to deliver 1 gigawatt of compute capacity.
This significant partnership with AMD comes just a couple of weeks after Meta finalized a separate multiyear deal to expand its data centers with millions of Nvidia’s latest CPUs and GPUs. Concurrently, the Facebook-maker is also actively developing its own in-house chips, though these efforts have reportedly encountered delays.
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