Meta signs long-term AI chip deal with AMD

Meta Platforms, the parent company of Facebook and Instagram, has signed a new long-term agreement with Advanced Micro Devices (AMD) to support its growing artificial intelligence (AI) systems.

Under this deal, AMD will provide up to six gigawatts of AI computing power using its Instinct family of GPUs. The first shipments are expected to begin in the second half of 2026.

As per Meta:
“At Meta, we’re working to build the next generation of AI and enable personal superintelligence for all. To do this, we need massive, scalable compute power that can handle the growing demands of our AI workloads. Our partnership with AMD, which builds on our existing collaboration, will help us meet those needs.”

The agreement strengthens the existing partnership between the two companies. AMD will supply its MI450-based custom GPUs and next-generation EPYC processors. These chips will be used for high-efficiency AI tasks, including inference and other heavy computing work. The agreement will “enable [Meta] to advance and innovate at an unmatched pace” and roll out “powerful, efficient new hardware co-designed with our software stack to handle massive growth.”

As part of the deal, AMD has also given Meta a performance-based warrant for up to 160 million AMD shares. These shares will be released in stages as shipment and technical goals are achieved. If all targets are met, Meta could own nearly 10 percent of AMD.

Meta said this deal is part of its plan to avoid depending on just one supplier. The company is also working with other chipmakers, including Nvidia, to secure enough AI hardware.

“The first tranche vests with the initial 1-gigawatt of shipments, with additional tranches vesting as Meta’s purchases scale to 6 gigawatts,” AMD was reported as saying. “Vesting is further tied to AMD achieving certain stock price thresholds and exercise is tied to Meta achieving key technical and commercial milestones.”

Industry sources say the total value of the deal could be more than $60 billion over five years. Some estimates suggest it may cross $100 billion if extended. Meta had also signed a hardware compatibility deal with NVIDIA just a week earlier.

Shipments will start in late 2026, giving Meta more computing power for its expanding AI projects. After the announcement, AMD’s stock price increased in pre-market trading. Through this long-term agreement, Meta is securing AI chips while also gaining strategic influence in one of its key suppliers.