February 24, 2026 – San Francisco Advanced Micro Devices (AMD) has struck a landmark agreement to supply Meta Platforms with up to $60 billion worth of artificial intelligence chips over the next five years. The deal allows Meta to acquire as much as 10% ownership of AMD, signaling deepening collaboration between the two tech giants.
AMD shares jumped over 11% in premarket trading following the announcement, reflecting strong investor confidence after the company’s previous multi-billion-dollar pact with OpenAI.
Expanding AI Partnerships
This agreement comes amid surging demand for AI processors as the industry races to expand data center and AI capabilities. Meta has also previously purchased AI chips from AMD rival Nvidia, highlighting the multi-vendor approach hyperscalers are taking to meet their infrastructure needs.
As part of the deal, AMD will provide six gigawatts’ worth of chips to Meta, beginning with one gigawatt of its upcoming MI450 flagship hardware in the second half of the year. The MI450 is optimized for inference workloads—the process by which AI models, like ChatGPT, generate responses in real time.
AMD will also supply custom central processors for Meta, designed to maximize computing performance while minimizing energy consumption. Two generations of these CPUs are included in the agreement, reflecting Meta’s long-term infrastructure planning.
“Mark [Zuckerberg] is extremely ambitious in what he wants to achieve, and we are committed to using every aspect of our technology to help Meta succeed,” AMD CEO Lisa Su said.
Strategic and Financial Details
As part of the arrangement, AMD will issue warrants for 160 million shares at an exercise price of just one cent. These warrants will vest progressively over the deal’s duration, contingent on AMD stock price performance and specific technical and commercial milestones.
The move underscores Meta’s aggressive investment strategy in AI hardware as capital expenditures across Big Tech—Alphabet, Microsoft, Amazon, and Meta—are projected to total at least $630 billion this year, mainly directed toward data centers and AI chips.
“Meta is making a big bet on AMD,” Su noted, while also confirming that the company will continue to source chips from other vendors and develop its own in-house processors to meet scaling requirements. Meta’s infrastructure head Santosh Janardhan emphasized that multiple chip suppliers are essential to supporting the massive growth of the company’s AI and data center operations.
The announcement highlights a broader trend of collaboration and competition in the AI chip market, with AMD and Nvidia emerging as critical suppliers to hyperscalers building next-generation AI infrastructure.
