AMD secures Meta AI chips pact for 6GW GPUs, with warrants

TLDR

• Meta and AMD sign multiyear AI infrastructure partnership exceeding $100 billion.
• Deal targets up to 6 gigawatts of AMD Instinct GPUs for data centers.
• Performance-based warrants could grant Meta up to 10% AMD equity.

Meta and AMD have agreed to a multiyear AI infrastructure partnership valued at more than $100 billion, with a structure that includes performance-based warrants that could give Meta up to 10% of AMD’s stock, according to the Wall Street Journal. The agreement is positioned to supply hyperscale compute for AI workloads across Meta’s data centers over several years.

CNBC reports Meta said the deal involves deploying up to 6 gigawatts of AMD Instinct GPUs in AI data centers. The 6 GW figure signals one of the sector’s largest single-customer rollouts and emphasizes power- and facility-level planning rather than unit counts.

Why it matters now: diversification, scale, and immediate market signals

The timing underscores a deliberate diversification strategy. Meta is expanding beyond a single silicon vendor, balancing Nvidia supply with AMD and custom chips to reduce lock-in and optimize cost-performance across varied training and inference workloads.

Company leadership has framed this as a multi-vendor necessity rather than a preference. “We don’t believe that a single silicon solution will work for all of our workloads. There’s a place for Nvidia, there’s a place for AMD and … there’s a place for our own custom silicon as well. We need all three,” said Santosh Janardhan, Head of Infrastructure at Meta, as reported by the Financial Times.

Immediate market signals included a sharp pre-market move in AMD shares, with a roughly 14% gain on the announcement, as reported by Barron’s. That reaction reflects expectations for multi-year revenue visibility and competitive traction versus Nvidia, though execution risks, supply coordination, and margin outcomes remain to be proven.

At the time of this writing, based on data from Simply Wall St, AMD had fallen about 22.9% over the last 30 days while rising 80.6% over one year. The figures highlight elevated volatility around AI chip narratives and shifting sentiment as investors reassess capacity ramps and competitive dynamics.

Deal value and scope: more than $100 billion, multi‑year deployment

As reported by Reuters, AMD said it agreed to sell up to $60 billion of AI hardware to Meta as part of this agreement, indicating a staged, multi-year supply program. The scope points to sustained buildout cadence and integration across data center footprints rather than a one-time shipment cycle.

Deal mechanics such as performance-based warrants align incentives and could, if milestones are achieved, lead to dilution for AMD shareholders while giving Meta economic exposure to supplier performance. Deployment pacing, power availability, and supply-chain coordination will likely determine realized capacity, cost-efficiency, and the balance of training versus inference throughput over the term.