Meta and AMD have entered into a massive partnership that could see Meta spend upwards of $100 billion on AI chips over the next several years.
The deal is designed to provide Meta with 6 gigawatts of computing power, a staggering amount of energy dedicated to running the company’s evolving AI models. This agreement also includes a financial incentive that could make Meta a major owner of AMD.
As part of the deal, AMD has issued Meta warrants to purchase 160 million shares (roughly 10% of the company) for just $0.01 per share. These shares will vest in stages as Meta hits specific purchase milestones.
However, there is a big catch: for Meta to receive the full stock award, AMD’s share price must climb to $600, which is roughly triple its current value of $200.
This structure essentially bets on the success of the partnership, incentivizing Meta to buy AMD chips while helping drive up AMD’s market value.
Meta plans to buy a mix of AMD’s MI540 series GPUs and its latest EPYC CPUs. While GPUs typically handle the heavy lifting of training AI, CPUs are becoming a vital part of “inference,” the process where the AI actually responds to user requests.
CPUs are often more power-efficient and easier to scale, and using them helps Meta avoid being entirely dependent on Nvidia, which currently dominates the market and charges high premiums for its hardware.
The first phase of this deployment is expected to begin in late 2026, starting with 1 gigawatt of capacity. This hardware will likely be housed in Meta’s rapidly expanding data center network.
Meta has already committed to spending $600 billion on U.S. infrastructure in the coming years, including a $10 billion gas-powered data center campus in Indiana.
This massive investment supports Mark Zuckerberg’s goal of achieving “personal superintelligence,” or AI systems that are deeply integrated into and capable of assisting with everyday human life.
Interestingly, this deal comes after a very similar agreement between AMD and OpenAI that was signed last October.
