New Delhi: Meta Platforms has signed a landmark artificial intelligence infrastructure deal with Advanced Micro Devices worth more than $100 billion, deepening its push into large-scale AI computing. The agreement will see Meta purchase 6 gigawatts of AI computing capacity powered by AMD’s latest MI450 chips over the next five years.
The partnership could also make Meta one of AMD’s largest shareholders. Under the terms, AMD will grant Meta warrants to acquire up to 160 million shares, about 10% of the chipmaker, at $0.01 per share if performance milestones are achieved. AMD shares jumped 7% at market open following the announcement, reported by The Wall Street Jounal.
A major blow to Nvidia’s AI dominance
It is a major victory for AMD, given that it tries to close the gap between itself and Nvidia in the booming AI chip business. The GPUs are now the keystone of AI systems that drive chatbots, recommendation engines, and generative models.
Meta is planning to roll out the initial gigawatt of AMD-based infrastructure later this year. Each gigawatt is a number of tens of billions of dollars in perceived revenue to AMD, as the company stated. In the long run, the entire rollout of 6 gigawatts would revolutionise the data centre business of AMD.
According to AMD Chief Executive Lisa Su, the deal will give AMD the key position in the AI growth of Meta. “Meta has many options,” Su said. We are interested in ensuring that we are at the table whenever they are scaling.
Warrants linked to AMD’s stock surge
Meta will also be given stock warrants as part of the structure but based on the future share performance of AMD. The last hurrah of shares will only crystallise in case the stocks of the company of AMD are worth 600. The stock closed at $196.60 on Monday.
This type of financing is increasingly becoming popular in the AI race. Chipmakers are providing equity-based incentives to gain purchase commitments on a long-term basis with only a small number of hyperscale purchasers. In the case of AMD, it agreed on such an arrangement with OpenAI last year, which critics have called acircular financing.
The deals have, however, been rewarded by investors to a large extent. Large AI orders have always boosted chip stocks, even in cases where equity incentives are concerned.
Meta’s expanding AI infrastructure push
The agreement comes as Meta sharply increases spending on AI infrastructure. The company invested $72 billion in AI data centres last year and expects capital expenditures to reach as much as $135 billion this year.
Chief Executive Mark Zuckerberg has outlined plans to deploy “tens of gigawatts” of compute capacity this decade, with ambitions to scale to “hundreds of gigawatts” over time. Just last week, Meta revealed plans to purchase millions of GPUs from Nvidia as part of its broader Meta Compute initiative.
Meta says AI has already driven record revenue growth in recent quarters, helping improve ad targeting and user engagement across Facebook and Instagram.
Custom chips for AI inference
The partnership also signals AMD’s deeper move into custom AI silicon. Unlike its traditional off-the-shelf GPUs, the new MI450 series can be tailored for specific workloads using a modular chiplet-based architecture.
Meta intends to optimise the AMD chips primarily for inference—the process by which trained AI models generate responses to user prompts. That focus places AMD in more direct competition with Broadcom, which leads the market for custom AI chip design.
“This is an important step as we diversify our computer,” Zuckerberg said in a statement, calling AMD a long-term strategic partner.
The deal underscores the scale of spending in the AI arms race. As demand for computers accelerates, long-term alliances between cloud giants and chipmakers are reshaping the semiconductor industry.