Meta plans to purchase up to $100 billion worth of AMD chips, which could drive around six gigawatts of data center power demand, as announced by the companies on Tuesday.
In the multiyear agreement, AMD provided Meta with a performance-based warrant for up to 160 million shares of AMD common stock, which is about 10% of the company, at $0.01 each. These are structured to vest with certain milestones. The full stock award is contingent on AMD’s share price reaching $600 for Meta to obtain its final tranche, according to The Wall Street Journal. AMD’s stock closed at $196.60 on Monday.
Under the agreement, Meta will purchase AMD’s MI540 GPUs and the latest CPUs. CPUs are increasingly vital in the AI inference compute stack due to their efficiency, scalability, and alternative to Nvidia.
AMD is slowly gaining traction as AI companies aim to reduce reliance on Nvidia, the traditional AI chip leader charging premium prices. In October, AMD and OpenAI made a similar deal trading equity for chip agreements.
Meta CEO Mark Zuckerberg stated that the partnership with AMD is an “important step” in diversifying its compute and progressing towards “personal superintelligence,” which means AI systems that deeply understand and empower people daily.
Meta has committed to investing at least $600 billion in U.S. data centers and AI infrastructure over the next several years, including a $135 billion capital expenditure in 2026. Meta recently announced plans for a $10 billion gas-powered data center campus in Indiana for 1 gigawatt of compute capacity.
The AMD partnership follows a multiyear deal Meta made to expand its data centers with millions of Nvidia’s latest CPUs and GPUs. Meta is also developing its own in-house chips but has reportedly faced delays.