AMD and Meta Announce Multi-Billion Dollar AI Chip Supply Deal with Equity Option

Advanced Micro Devices (AMD) has agreed to supply Meta Platforms with up to 6 gigawatts of AI chips over five years, in a deal valued at up to $60-$100 billion. The agreement includes a performance-based warrant allowing Meta to acquire up to a 10% stake in AMD, contingent on milestones. Meta plans to deploy AMD's MI450 GPUs and EPYC CPUs to power its AI data centers, complementing its existing partnership with Nvidia. This deal reflects growing investments in AI infrastructure amid rising industry competition and concerns over circular financing arrangements.