Meta Platforms Signs $100 Billion AI Chip Deal with AMD

Meta Platforms has entered into a landmark $100 billion agreement with AMD to secure 6 gigawatts of AI computing power over five years. The deal centers on AMD's MI450 GPU chips, with the first deployment slated for late 2026. Meta's involvement in the chip's design ensures optimization for AI inference tasks, a critical component of its infrastructure expansion.

The partnership includes a warrant provision allowing Meta to acquire up to 10% of AMD's stock at a nominal $0.01 per share, contingent on AMD's share price reaching $600. This strategic move mirrors AMD's previous deal with OpenAI and positions the company as a formidable competitor to Nvidia and Broadcom in the AI hardware space.

AMD's stock is expected to see significant upside as the company cements its role as a key enabler of large-scale AI deployments. The MI450's inference-focused architecture reflects the growing demand for efficient AI processing capabilities across tech giants.