Meta Platforms, the company behind Facebook and Instagram, announced a major deal to buy artificial intelligence chips from Advanced Micro Devices.
The agreement also gives Meta the option to acquire up to a 10% stake in the chipmaker.
The multiyear deal is valued at $60 billion and could potentially exceed $100 billion if Meta fully exercises its option to buy AMD shares and deploys all of the new technology.
Shipments of AMD’s latest MI450 GPUs are expected to begin in the second half of 2026, eventually scaling to a total of 6 gigawatts of AI computing capacity.
Meta said the chips will power AI systems across its platforms, complementing its in-house infrastructure programs.
The company has previously worked with Nvidia on AI hardware, and this deal is part of its strategy to diversify suppliers and reduce reliance on a single vendor.
AMD sees the partnership as a way to compete with Nvidia, which dominates the AI chip market and helped fuel the recent surge in AI tools like ChatGPT.
The announcement sent AMD shares up 9%, adding billions to the company’s market value.
AI expansion and competitive pressure
Meta has been aggressively investing in AI.
In recent months, Meta invested $14.3 billion in the AI data company Scale and acquired AI startup Manus, while also recruiting leadership to advance its “superintelligence” initiatives, according to The Associated Press.
The company says these efforts aim to develop AI systems that can assist users with personalized recommendations, virtual assistance and other tasks across its platforms.
The deal includes performance-based warrants that would allow Meta to acquire up to 160 million AMD shares at a nominal price, vesting as milestones are met with the AI chip deployments, according to The Wall Street Journal.
Industry analysts say the partnership underscores the strategic importance of AI infrastructure and highlights the intense competition among tech giants to build the next generation of AI capabilities.