Meta has struck a take care of AMD to purchase as much as six gigawatts price of AI chips, each firms introduced. The settlement is structured in a manner that would see AMD subject Meta as much as 160 million shares of its widespread inventory offered GPU cargo milestones are achieved — that means Meta might come clean with 10 % of AMD if the deal totally completes.
Meta plans to buy six gigawatts of AMD’s Intuition GPUs primarily based on the MI450 structure and optimized for Meta’s workloads, with the primary gigawatt deployment set to start within the second half of 2026. AMD and Meta will even develop on their EPYC CPU partnership, with Meta deploying “hundreds of thousands” of AMD EPYC CPUs and develop into a launch buyer for its sixth-generation EPYC CPUs.
The tranche of AMD widespread inventory will vest with the primary one gigawatt of shipments, with further tranches vesting as Meta scales to six gigawatts. Vesting is tied to AMD hitting sure inventory worth thresholds and Meta attaining sure technical and business milestones. The deal is similar to one which AMD structured with OpenAI final 12 months, with AMD acquiring as much as a ten % stake in AMD in change for six gigawatts of Intuition GPUs.
Such offers are being likened to round transactions which have created a tangle of interconnected dependencies between AI firms and chip producers. Analysts have noticed that such offers could enlarge losses if demand for AI does not match the sky-high market expectations.
The settlement additionally exhibits that AI firms are eager to diversify away from NVIDIA, with AMD being a key different. “By diversifying our partnerships and know-how stack, we’re constructing a extra resilient and versatile infrastructure,” Meta wrote in its information launch.
