Meta to Invest $100 Billion in AMD Chips for Data Centers
Meta has announced plans to purchase up to $100 billion worth of AMD chips, a move that could drive approximately six gigawatts of data center power demand. This multiyear agreement includes a performance-based warrant for Meta to acquire up to 160 million shares of AMD common stock, representing about 10% of the company, at a nominal price of $0.01 each. The stock award is tied to specific milestones, with the full allotment contingent on AMD’s share price reaching $600.
As part of the deal, Meta will be acquiring AMD’s MI540 series of GPUs and its latest generation of CPUs. This strategic partnership is significant as CPUs are becoming increasingly vital in the AI inference compute stack due to their efficiency, scalability, and the desire to reduce dependence on Nvidia.
AMD has been gaining traction in the AI chip market as companies seek alternatives to Nvidia’s premium offerings. Last year, AMD entered into a similar equity-for-chips deal with OpenAI, further solidifying its position in the industry.
Meta’s CEO, Mark Zuckerberg, views the collaboration with AMD as a crucial step in diversifying the company’s compute capabilities and advancing towards “personal superintelligence.” Zuckerberg envisions personal superintelligence as AI systems that deeply understand and empower individuals in their daily lives.
Meta has committed to investing at least $600 billion in U.S. data centers and AI infrastructure over the next few years, with a projected capital expenditure of $135 billion in 2026 alone. The company recently unveiled plans for a gas-powered data center campus in Indiana, designed to support 1 gigawatt of compute capacity.
This partnership with AMD comes on the heels of Meta’s recent agreement with Nvidia to expand its data centers with millions of the latter’s latest CPUs and GPUs. Despite working on its own in-house chips, Meta has reportedly faced delays in their development.
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