tech
February 24, 2026
Meta could end up owning 10% of AMD in new chip deal
AMD will supply 6 gigawatts’ worth of chips to buttress Meta’s AI efforts.
TL;DR
- Meta and AMD have agreed to a multi-billion dollar chip deal where Meta will acquire customized chips with a total capacity of 6 gigawatts.
- The deal includes a performance-based warrant allowing Meta to acquire up to 160 million AMD shares, potentially giving Meta a 10% stake in the company.
- This transaction is part of a trend where Big Tech diversifies its AI chip suppliers, moving away from market leader Nvidia.
- Meta is significantly increasing its AI infrastructure spending, planning to invest up to $135 billion this year.
- AMD will supply a custom version of its MI450 AI chips to Meta, primarily for inference workloads.
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