Meta has agreed to purchase up to $100 billion in AMD chips over several years, increasing data center power needs by around six gigawatts. This arrangement involves Meta gaining the right to buy up to 160 million AMD shares at a very low price, dependent on AMD hitting certain milestones and significant growth in its stock price. The deal includes buying AMD’s MI540 GPU lineup and newer CPUs, as these processors are becoming more important for AI tasks thanks to their efficiency and flexibility, lowering reliance on Nvidia. AMD’s CEO Lisa Su noted that the expanding demand for CPUs is tied to the widespread construction of AI infrastructure, while AMD itself is making gains as more companies look for options beyond Nvidia.
Mark Zuckerberg, Meta’s CEO, called the partnership with AMD a critical step in expanding Meta’s computing capabilities and supporting future AI systems designed to assist individuals. The strategy involves Meta investing over $600 billion into American data centers and AI infrastructure, including plans for a massive gas-fueled site in Indiana and over $135 billion earmarked for 2026 capital spending. These moves come alongside a similar agreement with Nvidia and ongoing delays with Meta’s in-house chip projects.
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