Meta and AMD Announce Multiyear AI Chip Supply and Equity Deal

In Brief

Meta has agreed to purchase AI chips from AMD in a multiyear deal, with an equity component.

Key Facts

• Meta and AMD have entered a multiyear agreement for AI chip supply to support Meta's AI initiatives.
• The deal is valued at $60 billion according to The Guardian, while TechCrunch reports it could reach up to $100 billion.
• Meta will receive 6 gigawatts' worth of chips from AMD, according to Ars Technica and The Guardian.
• The agreement includes a warrant for Meta to buy up to 160 million AMD shares, as reported by TechCrunch.
• Some sources, including Ars Technica and The Guardian, state Meta could acquire up to a 10% stake in AMD through the warrant.
• AMD has previously supplied AI chips to other major technology companies, according to CNA.

What Happened

Meta has signed a multiyear agreement with AMD to purchase AI chips, with reported values ranging from $60 billion (The Guardian) to up to $100 billion (TechCrunch). The deal includes a warrant for Meta to acquire up to 160 million AMD shares, which some sources say could represent a 10% stake. AMD will supply 6 gigawatts' worth of chips to Meta.

Why It Matters

The agreement represents a significant investment by Meta in AI infrastructure and expands AMD's presence in the AI chip market. Multiple sources note that AMD is seeking to compete with Nvidia, a leading supplier of AI chips, though no official response from Nvidia was reported. Deal value varies: The Guardian reports $60 billion, TechCrunch reports up to $100 billion. The potential 10% stake is based on the warrant for 160 million shares, as reported by Ars Technica and The Guardian. No official confirmation from Meta or AMD on exact figures. No Nvidia response was available.