Meta Platforms Inc. has announced a multiyear agreement to purchase potentially up to $100 billion worth of advanced semiconductor chips from Advanced Micro Devices (AMD). The deal, announced on Tuesday, is a cornerstone of Meta's strategy to diversify its artificial intelligence (AI) compute infrastructure and chase its goal of developing "personal superintelligence."
The agreement covers AMD's MI540 series of GPUs and its latest generation of CPUs. Analysts estimate the scale of the purchase could drive roughly six gigawatts of data centre power demand, underscoring the immense energy requirements of next-generation AI systems.
Equity-for-Chips Structure
As part of the deal, AMD has issued Meta a performance-based warrant for up to 160 million shares of AMD common stock—approximately 10% of the company—for $0.01 each. The warrant is structured to vest alongside certain, unspecified commercial milestones.
According to The Wall Street Journal, the full stock award is conditional on AMD’s share price performance. For Meta to receive the final tranche of shares, AMD’s stock would need to hit $600. AMD’s stock closed at $196.60 on the Monday preceding the announcement.
Diversifying Beyond Nvidia
The partnership marks a significant step in the AI industry's efforts to reduce reliance on Nvidia, the longstanding market leader. CPUs are increasingly viewed as a core, efficient pillar of the AI inference compute stack, offering easier scaling and an alternative to being tied solely to one supplier.
This follows a similar pattern set last October, when AMD and OpenAI struck a comparable deal trading equity for a commitment to purchase chips. Meta CEO Mark Zuckerberg stated the AMD partnership is "an important step" as the company works towards AI systems "designed to deeply understand and empower individuals in their everyday lives."
Meta's Massive Infrastructure Push
The deal accelerates Meta's previously announced pledge to invest at least $600 billion in U.S. data centres and AI infrastructure over the next several years. The company has projected a capital expenditure spend of $135 billion in 2026 alone.
This AMD agreement comes just weeks after Meta struck another multiyear deal to expand its data centres with millions of Nvidia’s latest CPUs and GPUs. The company is also developing its own in-house chips, though reports indicate those projects have faced delays.
Meta recently unveiled plans for a $10 billion gas-powered data centre campus in Indiana, designed for 1 gigawatt of compute capacity, highlighting the physical scale of its AI ambitions.