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(Sharecast News) - Meta Platforms is to buy up to $60bn of AI chips from Advanced Micro Devices in a five-year deal that could see the social network giant take a 10% stake in the semiconductor company.
The California-based firms jointly announced a 6-gigawatt agreement to power Meta's next generation of AI infrastructure using AMD Instinct GPUs. Shipments supporting the first GW development are expected to begin in the second half of 2026.
Meta will also become a lead customer for AMD's sixth-generation EPYC CPUs called 'Venice', and a next-generation EPYC processor called 'Verano'.
As part of the deal, and to "further align strategic interests", AMD has issued Meta with a performance-based warrant for up to 160m shares. The stock will vest on specific milestones linked to chip shipments up to 6GW.
"Vesting is further tied to AMD achieving certain stock price thresholds and exercise is tied to Meta achieving key technical and commercial milestones," AMD said.
"We're excited to form a long-term partnership with AMD to deploy efficient inference compute and deliver personal superintelligence," said Meta's founder and chief executive Mark Zuckerberg. "This is an important step for Meta as we diversify our compute. I expect AMD to be an important partner for many years to come."
AMD said the partnership will drive "substantial multi-year revenue growth", causing futures to spike 10% to $216.35 in pre-market trading. Meta, meanwhile, was trading 0.3% lower at $635.20.
Commenting on the deal, AMD's chair and CEO Lisa Su said: "This multi-year, multi-generation collaboration across Instinct GPUs, EPYC CPUs and rack-scale AI systems aligns our roadmaps to deliver high-performance, energy-efficient infrastructure optimized for Meta's workloads, accelerating one of the industry's largest AI deployments and placing AMD at the center of the global AI buildout."
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