Meta and AMD Sign Massive $100 Billion AI Chip Deal with Equity Option

Key Facts

1Meta signed an agreement to purchase AMD's MI450 chips to power its data centers.

2The deal could reach a value of $100 billion and includes an option for Meta to take a 10% stake in AMD.

3The agreement covers a 6-gigawatt capacity for data centers.

Meta Platforms has entered into a strategic partnership with AMD valued at up to $100 billion to supply advanced AI chips. Under the agreement, Meta will purchase AMD’s MI450 chips to power its rapidly expanding data center infrastructure. The deal also includes a significant provision allowing Meta to potentially acquire a 10% equity stake in AMD, deepening the strategic ties between the two giants. Furthermore, the partnership covers a massive 6-gigawatt power capacity to support Meta's large-scale artificial intelligence initiatives. This move is seen as a strategic effort by Meta to diversify its hardware supply chain and reduce its heavy reliance on Nvidia. For AMD, this contract represents a major milestone, positioning the company as a formidable challenger in the high-stakes AI semiconductor market.