Meta Platforms in Talks for $100 Billion AI Chip Deal with AMD
Meta Platforms is planning to finalize a major agreement with Advanced Micro Devices (AMD) to purchase advanced artificial intelligence chips in a deal that could exceed $100 billion, marking one of the largest digital infrastructure investments in the global technology sector.
Under the proposed agreement, Meta will acquire AMD’s latest MI450 AI chips to power its artificial intelligence data centers. The total agreed capacity amounts to 6 gigawatts, with the first batch scheduled for delivery in the second half of the current year, starting with the construction of a 1-gigawatt data center as the initial phase of the project.
The deal also includes strategic arrangements allowing Meta to acquire up to a 10% equity stake in AMD, underscoring the long-term nature of the partnership. Additionally, AMD has offered a performance-based incentive covering up to 160 million shares of common stock, priced at a nominal value of $0.01 per share, to vest upon meeting specific operational benchmarks.
The first tranche of shares is expected to vest upon delivery of the initial 1-gigawatt batch of chips, with additional tranches vesting progressively as Meta expands its purchases toward the full 6-gigawatt capacity.
This move comes just days after Meta announced a long-term partnership with NVIDIA to supply millions of AI chips and related equipment. The dual-track strategy highlights Meta’s effort to diversify its supply chain and reduce reliance on a single vendor amid surging global demand for AI processors.