Meta and AMD’s multibillion-dollar deal revolves around AI chips


Meta joins OpenAI as one of the major technology companies to acquire a stake in chip maker AMD, as part of a deal Amnesty International Appliance buying frenzy. Meta and AMD on Tuesday announced a partnership that will include CEO Mark Zuckerberg’s tech giant purchasing billions of dollars worth of AMD Instinct GPUs in order to advance its ambitions to build… AI offerings across meta platformsincluding Instagram, Facebook, and WhatsApp.

In releaseMeta described the deal as “multi-year” and said the AI ​​purchase will provide Meta with up to 6 gigawatts of AMD GPUs, “silicon computing technology used to support modern AI models.”

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According to the US Department of EnergyOne gigawatt (1 billion watts) is equivalent to approximately 2,000 large solar panels or 100 million LED lights.

in AMD version of the ad“We are proud to expand our strategic partnership with Meta as they push the boundaries of AI on an unprecedented scale,” said CEO Lisa Su. As part of the deal, Meta will acquire a 10% stake in AMD.

AMD, based in Santa Clara, California, previously signed a deal with OpenAI, which makes ChatGPT Announced last Octoberwhich is similar to a Meta deal and also gives its AI rival AMD a 10% ownership.

(Disclosure: Ziff Davis, the parent company of CNET, in 2025 filed a lawsuit against OpenAI, alleging that it infringed Ziff Davis’s copyrights in training and operating its AI systems.)

What does this mean for the rest of us?

AMD’s two massive deals may not have an immediate impact on people who use Meta’s social networking and communications applications, or even on those who buy AMD products, including desktop processors and graphics cards.

But it indicates that large companies that are betting heavily on the future of artificial intelligence are doing their best to secure the devices they need as supplies diminish and demand for the technology increases. Prices for components such as RAM are rising. Some of these restrictions aren’t expected to end anytime soon, and shoppers could start to see prices rise more than they already have for computers, smartphones, vehicles, and other products that rely heavily on computing components like these.

It’s also a sign that Meta’s AI ambitions are not slowing down as it continues to compete with companies including OpenAI, Microsoft and Google to develop AI products and tools.

Also a factor: Meta’s push into wearables

Another reason why AMD wants access to AI chips goes beyond its own data centers and internet platforms: Meta has increasingly focused on wearables like Oakley Meta AI Sunglasses and Other potential new portable products.

In addition to what AMD Meta GPUs could bring to the power of AI infrastructure, AMD may also be part of its wearable future.

“Because AI models require unprecedented processing power to process data and information in real-time, Meta is focused on securing the necessary supply chain for its wearable devices,” said Michael J. Wolf, Founder and CEO of Meta. Activate the consulting company.

Wolf believes that the deals signed by Meta and OpenAI will not be the last time a major AI-focused company secures supplies of semiconductors.

“As consumer devices shift from smartphones to smart glasses, we will definitely see more of these mega deals,” Wolf said.



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