Meta inks AMD chipset deal worth up to $100B as it chases ‘personal superintelligence’

Meta plans to buy up to $100 billion worth of AMD chips, enough to meet nearly six gigawatts of power demand in data centers, the companies announced Tuesday.

As part of the multi-year agreement, AMD issued to Meta a performance-based warrant for up to 160 million shares of AMD common stock — or approximately 10% of the company — for $0.01 per share, designed to vest along certain milestones. The full stock award is conditional on AMD’s stock price, which must reach $600 for Meta to get the final tranche. Per The Wall Street Journal. AMD stock closed at $196.60 on Monday.

Under the agreement, Meta will purchase AMD’s MI540 series GPUs and the latest generation of CPUs. Central processing units (CPUs) are increasingly becoming a mainstay of the AI ​​inference computing stack because they are efficient, easier to scale, and don’t tie companies to just Nvidia.

“The CPU market is absolutely on fire,” AMD CEO Lisa Su said Tuesday morning during an investor press conference. “There’s huge demand. It’s continued to grow, and that’s actually a result of the deployment of AI infrastructure as inference metrics, agent AI metrics, and our portfolio is very well positioned.”

AMD has been slowly gaining ground as AI companies look to reduce their reliance on Nvidia, which has long been the leader in AI chips and has commanded a premium for the title. last October, AMD and OpenAI hit the same spot Stock trading deal to obtain an agreement to buy chips.

Meta CEO Mark Zuckerberg said the company’s partnership with AMD is an “important step” as it diversifies its computing and works toward “personal superintelligence.” Zuckerberg has defined personal superintelligence as artificial intelligence systems designed to deeply understand individuals and empower them in their daily lives.

Meta has pledged to invest at least $600 billion in US data centers and AI infrastructure over the next several years, including expected capital spending $135 billion in 2026 Meta recently revealed plans for $10 billion Gas-powered data center campus In Indiana it is designed for 1 gigawatt of computing capacity.

The AMD partnership comes two weeks after Meta was hit by Multi-year deal Expanding its data centers with millions of the latest Nvidia CPUs and GPUs. The Facebook manufacturer is also working on its own internal chipset but has done so It is said Hit delay.

This article has been updated with more information from AMD CEO Lisa Su.