Meta has announced a major deal with AMD to purchase 6 gigawatts of AI GPUs, potentially acquiring up to a 10% equity stake in AMD based on performance milestones, signaling AMD’s growing role in the AI hardware market. This partnership, following a similar AMD-OpenAI agreement, highlights Meta’s strategy to diversify its AI hardware suppliers beyond Nvidia, aiming to enhance its AI capabilities at scale.
Meta has announced a major partnership with AMD, agreeing to purchase 6 gigawatts of AI processors from the chipmaker. As part of the deal, Meta may also acquire up to a 10% equity stake in AMD, depending on performance milestones. This move comes shortly after AMD struck a similar agreement with OpenAI in October, signaling AMD’s growing presence in the AI hardware market.
The deployment of these AMD-manufactured graphics processing units (GPUs) is expected to begin in the second half of 2026. GPUs are critical for running advanced artificial intelligence processes, and Meta CEO Mark Zuckerberg emphasized that this partnership will allow Meta to “deploy official inference compute,” which is essential for executing AI tasks at scale.
Meta will receive a warrant for up to 160 million shares of AMD common stock at just one cent per share, contingent on meeting certain performance milestones related to the deployment of AMD’s GPUs. The first tranche of stock will vest after the first gigawatt of GPUs is shipped, with subsequent tranches tied to the deployment of the remaining GPUs. The final tranche is dependent on AMD’s stock price reaching $600 per share, according to an SEC filing.
While the exact financial terms of the deal were not disclosed, reports suggest it could be worth tens of billions of dollars. Following the announcement, AMD’s stock surged by about 7% on Tuesday morning. In contrast, Nvidia’s stock, which is currently the world’s largest company by market capitalization and a major competitor in the GPU space, briefly dipped before recovering slightly. Meta’s own stock dropped by around 7%.
Despite this new partnership with AMD, Meta remains a significant Nvidia customer. Just a week prior, Meta announced another multi-year deal with Nvidia to purchase GPUs, CPUs, and other hardware for its data centers—a deal also rumored to be worth tens of billions of dollars. These moves indicate Meta’s strategy to diversify its AI hardware suppliers, potentially challenging Nvidia’s dominance in the market for powering AI data centers and large language models.