Meta has struck a deal with AMD to buy up to six gigawatts worth of AI chips, both companies announced. The agreement is structured in a way that could see AMD issue Meta up to 160 million shares of its common stock provided GPU shipment milestones are achieved — meaning Meta could own up to 10 percent of AMD if the deal fully completes.
Meta plans to purchase six gigawatts of AMD’s Instinct GPUs based on the MI450 architecture and optimized for Meta’s workloads, with the first gigawatt deployment set to begin in the second half of 2026. AMD and Meta will also expand on their EPYC CPU partnership, with Meta deploying “millions” of AMD EPYC CPUs and become a launch customer for its sixth-generation EPYC CPUs.
The tranche of AMD common stock will vest with the first one gigawatt of shipments, with additional tranches vesting as Meta scales to 6 gigawatts. Vesting is tied to AMD hitting certain stock price thresholds and Meta achieving certain technical and commercial milestones. The deal is very similar to one that AMD structured with OpenAI last year, with AMD obtaining up to a 10 percent stake in AMD in exchange for six gigawatts of Instinct GPUs.
Such deals are being likened to circular transactions that have created a tangle of interconnected dependencies between AI companies and chip manufacturers. Analysts have observed that such deals may magnify losses if demand for AI doesn’t match the sky-high market expectations.
The agreement also shows that AI companies are keen to diversify away from NVIDIA, with AMD being a key alternative. “By diversifying our partnerships and technology stack, we’re building a more resilient and flexible infrastructure,” Meta wrote in its news release.
