AMD Strikes $60B AI Chip Deal With Meta, Signals New Power Shift

Advanced Micro Devices has announced a major five-year agreement to supply up to $60 billion worth of artificial intelligence chips to Meta Platforms, marking its second mega AI deal after a similar partnership with OpenAI last year. Under the new arrangement, Meta can also buy up to a 10% stake in Advanced Micro Devices, highlighting growing financial and strategic links between leading AI firms and chipmakers. The announcement boosted investor confidence, sending AMD shares sharply higher in early trading.

The deal reflects the booming demand for AI processors as big technology companies race to expand data centers and computing power. Meta has already placed large orders with Nvidia, but the AMD partnership shows it is diversifying suppliers to support its massive AI ambitions. AMD will supply up to six gigawatts of computing capacity, beginning with its upcoming MI450 chips, designed mainly for inference tasks, where AI systems generate responses in real time.

AMD CEO Lisa Su said Meta played a role in shaping the MI450’s design and will also purchase customized CPUs built for high performance with lower energy use. Two generations of these processors will be part of the deal. Su noted that Meta CEO Mark Zuckerberg has ambitious goals, and AMD aims to support them with its full technology stack.

As part of the agreement, AMD will issue share warrants to Meta, linked to performance and technical milestones. Meta, however, will continue buying chips from multiple vendors and developing its own processors, reflecting the scale and complexity of today’s AI infrastructure race.

Source: Moneycontrol