Executive Summary
- Meta has finalized a partnership with AMD exceeding $100 billion in value, securing 6 gigawatts of AI computing capacity across a five-year timeline.
- The package includes AMD’s MI450 GPUs alongside specially designed CPUs tailored for Meta’s specific requirements.
- Through warrant agreements priced at one cent per share, Meta may obtain as much as 10% ownership in AMD.
- Initial delivery of one gigawatt worth of processors is scheduled for late 2026.
- This partnership follows a similar structure to AMD’s previous arrangement with OpenAI.
In a landmark partnership announced this week, Meta Platforms has committed to a semiconductor supply arrangement with AMD worth more than $100 billion, securing 6 gigawatts of artificial intelligence computing capacity through the end of this decade.
Tuesday’s announcement positions AMD as a major challenger to Nvidia and Broadcom in the race for Meta’s substantial AI hardware investments.
Advanced Micro Devices, Inc., AMD
At the heart of this collaboration is AMD’s MI450 GPU architecture. Meta played an active role in developing specifications for this processor, with particular emphasis on inference capabilities—the computational phase where trained AI models generate responses to user inputs. The rollout of the initial gigawatt of MI450 processors is targeted for the latter half of 2026.
According to AMD executives, each gigawatt of delivered computing capability translates to revenue in the tens of billions of dollars.
Customized Processor Technology Included
The partnership extends beyond graphics processors. Meta has committed to purchasing AMD central processing units, including a bespoke version engineered exclusively for Meta’s operational requirements. The focus centers on achieving maximum performance while minimizing power consumption. Two successive generations of AMD’s CPU technology are covered under the terms.
Lisa Su, AMD’s Chief Executive Officer, characterized the deal as a strategic move to maintain competitive positioning against Nvidia for enterprise-scale, multi-year commitments.
“Meta has numerous options available,” Su explained. “My objective is ensuring AMD remains their preferred partner for future technology needs.”
Equity Warrant Terms
The agreement includes AMD issuing Meta warrants enabling the purchase of up to 160 million AMD shares at one cent apiece—representing approximately 10% of the semiconductor company. These warrants unlock progressively, contingent upon AMD’s stock price reaching predetermined thresholds. The final allocation only becomes available if AMD shares hit $600. AMD’s closing price Monday stood at $196.60.
Each warrant tier includes additional “technical and commercial considerations” that Meta must fulfill.
This framework parallels AMD’s OpenAI agreement from late 2025. Some analysts have characterized these arrangements as “circular financing”—transactions involving reciprocal financial flows between partnering organizations.
Multi-Vendor Strategy Continues
Meta emphasized its intention to maintain relationships with multiple chip suppliers. Just last week, the social media giant unveiled another multi-billion dollar procurement agreement for Nvidia processors.
Santosh Janardhan, who oversees Meta’s infrastructure operations, noted that the company’s ambitious data center expansion necessitates diverse supply channels.
Meta’s roadmap calls for deploying dozens of gigawatts of computing infrastructure throughout the current decade. The company allocated $72 billion toward AI infrastructure during 2025, with 2026 budgets reaching as high as $135 billion.
Mark Zuckerberg said AMD would be “an important partner for many years to come.”
Shares of AMD finished Tuesday’s trading session down 1.77%. Meta stock declined 2.81%.
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