Key Takeaways
- A massive partnership between Meta Platforms and Advanced Micro Devices encompasses over $100 billion for 6 gigawatts of AI computing infrastructure across five years.
- The agreement includes AMD’s next-generation MI450 GPU chips alongside specially engineered CPUs tailored to Meta’s specifications.
- Through a warrant arrangement at $0.01 per share, Meta may obtain as much as 10% ownership in AMD, with vesting contingent on stock price milestones reaching $600.
- Deployment of the initial gigawatt of MI450 chips is scheduled for late 2026.
- This partnership echoes AMD’s previous arrangement with OpenAI and intensifies competition with Nvidia and Broadcom in the AI chip market.
Advanced Micro Devices has secured what may be its most significant chip contract to date, establishing a partnership with Meta Platforms to deliver 6 gigawatts of artificial intelligence computing capacity in an arrangement exceeding $100 billion in value.
The landmark deal was unveiled on Tuesday and spans five years. At its core is AMD’s forthcoming MI450 GPU, with initial gigawatt-scale deployment anticipated during the latter half of 2026.
Meta played an active role in engineering the MI450’s specifications. The processor has been specifically optimized for inference operations — the computational work performed when AI systems generate responses to user prompts — as opposed to the foundational training phase of AI model development.
Advanced Micro Devices, Inc., AMD
According to AMD, each gigawatt of computational capacity represents chip revenue totaling several tens of billions of dollars for the semiconductor manufacturer.
The agreement extends beyond graphics processors. Meta will additionally procure CPUs from AMD. Among these processors, one variant will be exclusively engineered for Meta’s infrastructure, balancing robust performance with minimal power consumption. The arrangement encompasses two successive generations of AMD’s CPU lineup.
Understanding the Warrant Agreement
Within this partnership framework, AMD is granting Meta warrants enabling the purchase of up to 160 million AMD shares at merely $0.01 apiece. Should Meta exercise these fully, it would control approximately 10% of the semiconductor company.
The warrants feature conditional vesting rather than automatic activation. They’re linked to AMD achieving progressively higher stock price benchmarks, with the ultimate portion becoming available only when AMD’s share price hits $600. AMD’s stock settled at $196.60 in Monday’s trading session.
Additionally, Meta must satisfy certain “technical and commercial considerations” before each warrant segment can be unlocked.
This framework closely mirrors AMD’s previous agreement with OpenAI from late 2025. Some analysts have criticized these structures as “circular financing” — scenarios where companies essentially fund each other through interconnected purchases and investments.
Meta’s Diversified Chip Strategy
Meta isn’t committing exclusively to AMD. The social media giant confirmed its intention to maintain relationships with alternative chip suppliers while simultaneously advancing its proprietary processor development.
Just last week, Meta revealed plans to acquire several million Nvidia GPUs through a separate agreement anticipated to cost tens of billions of dollars.
Santosh Janardhan, Meta’s infrastructure chief, explained that the sheer magnitude of the company’s data center expansion necessitates working with multiple semiconductor partners.
“All of the chip makers end up having sort of a seat at the table,” Janardhan said.
Meta’s roadmap calls for deploying “tens of gigawatts” of data center computing infrastructure throughout this decade, with CEO Mark Zuckerberg projecting expansion to “hundreds of gigawatts or more over time.” The company allocated $72 billion toward AI infrastructure in the previous year and anticipates spending up to $135 billion in 2026.
AMD CEO Lisa Su characterized the partnership as a strategic initiative to challenge Nvidia’s dominance among major, long-term enterprise clients.
“Meta has a lot of choices,” Su said. “I want to make sure that we are always a clear seat at the table when they think about what they need next.”
The agreement also positions AMD as a more formidable competitor to Broadcom, presently the dominant player in custom AI chip design. AMD’s MI450 employs a chiplet-based design methodology that facilitates customization more effectively than its predecessor single-die chip configurations.
