Meta has announced a significant multiyear agreement with Advanced Micro Devices (AMD) to accelerate its artificial intelligence expansion, marking another major investment in computing infrastructure just days after committing to large-scale purchases of Nvidia processors. The social media giant said Tuesday that the deal will involve deploying up to 6 gigawatts of AMD’s graphics processing units across its AI data centers, along with AI-optimized central processing units designed to support next-generation workloads.
According to the company, early shipments of AMD’s MI450 GPUs, delivered through Helios rack-scale servers, are expected to begin later this year. The move underscores Meta’s aggressive strategy to scale its AI capabilities as competition intensifies among major technology companies building advanced artificial intelligence systems.
AMD Chief Executive Lisa Su described the agreement as a carefully timed strategic investment. Speaking in a televised interview, she said the structure of the partnership reflects confidence in the long-term growth of AI infrastructure and positions AMD to benefit from the expanding demand for high-performance computing. The announcement lifted AMD shares by about 7%, while Meta stock edged slightly lower and Nvidia shares remained largely unchanged in early trading.
The arrangement includes a performance-based warrant that allows Meta to acquire up to 160 million AMD shares, representing roughly 10% of the chipmaker. The first portion of the warrant will vest once the initial 1 gigawatt of Instinct GPUs is shipped, with additional tranches tied to Meta’s purchases reaching the full 6 gigawatts. Vesting conditions also depend on AMD meeting certain stock price thresholds as well as technical and commercial milestones set by Meta.
Su characterized the warrant structure as mutually beneficial for shareholders and said the agreement could prove transformational for AMD as it works to expand its presence in the AI chip market. She emphasized that the industry remains in the early stages of realizing the full economic impact of artificial intelligence, making forward-looking investments essential.
The deal follows a similar agreement AMD reached with OpenAI in October, which also included warrants tied to deployment targets and stock performance. Together, the partnerships signal AMD’s growing role as an alternative supplier for hyperscalers and AI developers seeking to diversify beyond Nvidia’s dominant position.
Meta’s latest move comes amid a broader surge in spending on AI infrastructure. In its recent earnings report, the company projected up to $135 billion in capital expenditures this year as it races to keep pace with competitors and emerging AI leaders. Meta is planning a network of 30 data centers worldwide, including 26 in the United States, to support its expanding AI ecosystem.
Despite the momentum, AMD still trails Nvidia significantly in the AI chip market, where Nvidia is estimated to control roughly 90% share and commands a multitrillion-dollar valuation. Analysts say Meta’s willingness to work with multiple chip suppliers reflects both the scale of demand for compute power and the ongoing supply constraints across the industry.
