Finance
AMD clinches second mega chip supply deal, this time with Meta
Published by Global Banking & Finance Review®
Posted on February 24, 2026
3 min readLast updated: February 24, 2026
Quick Summary
AMD says it will supply Meta up to $60B in AI chips over five years, starting with MI450 GPUs in H2 2026 toward 6GW capacity. The pact includes a performance‑linked warrant and supports Meta’s multi‑vendor AI strategy alongside Nvidia.
AMD seals second huge AI chip pact in five-year deal with Meta
AMD–Meta AI Supply Deal Overview
SAN FRANCISCO, Feb 24 (Reuters) - Advanced Micro Devices said on Tuesday it has agreed to sell up to $60 billion worth of artificial intelligence chips to Meta Platforms over five years in a deal that allows the Facebook owner to purchase as much as 10% of the chip firm.
AMD signed a similar pact with OpenAI last year, which was hailed as a vote of confidence in its chips and software, significantly boosting its stock price.
A recent slew of chip supply agreements underscores ravenous appetite for processors from the AI industry. Meta has separately struck a deal with AMD's larger rival Nvidia to buy millions of AI chips.
Scale and Timeline: 6GW, MI450 rollout
AMD will supply six gigawatts' worth of chips to Meta, starting with one gigawatt of the company's forthcoming MI450 flagship hardware in the second half of this year, AMD CEO Lisa Su told a news briefing.
CPU Purchases and Custom Variant
In addition to the AMD's flagship graphics chips (GPUs), Meta also plans to buy central processors (CPUs), including a variant that will be customized for the social media platform's needs.
The custom CPU will be tuned to deliver powerful performance while keeping energy consumption as low as possible, Su said. The deal will include two generations of AMD's CPUs.
"So no question Mark is very, very ambitious in what he wants to accomplish, and we want to use every aspect of our technology to really help Meta to accomplish that," Su said, referring to Meta CEO Mark Zuckerberg.
Inference-Optimized Design and Market Outlook
Meta helped contribute to the MI450 design that is optimized for a computing process known as inference, which is when a chatbot such as OpenAI's ChatGPT responds to a user's queries.
Industry analysts expect the market for inference hardware to dwarf the size of the market for the equipment needed to build the large models AI runs from.
Warrant Structure and Vesting Triggers
As part of the agreement, AMD will issue a warrant for 160 million shares with an exercise price of one cent.
Stock thresholds up to $600
The warrant will vest over the course of the deal and will do so after AMD stock price hits rising performance targets up to $600. In addition to the stock price targets, there are "technical and commercial considerations" for each tranche of the warrant that Meta needs to fulfill.
"Meta is making a big bet on AMD," Su said.
AMD share price reference
Shares of AMD closed at $196.60 in Monday trading.
Meta’s Multi‑Vendor Strategy
Meta plans to continue to buy chips from other vendors and develop its in-house processors at the same time, Santosh Janardhan, Meta's infrastructure head said in the call with reporters. Meta has been in discussions with Google about using the company's tensor processors (TPUs) for AI work, sources have said.
The scale at which Meta is building data centers and infrastructure requires multiple chip vendors and approaches, Janardhan said.
"All of the chip makers end up having sort of a seat at the table," Janardhan added.
(Reporting by Stephen Nellis and Max A. Cherney in San Francisco; Editing by Edwina Gibbs)
Key Takeaways
- •Article reports AMD agreed to supply Meta up to $60B in AI chips over five years.
- •Initial deliveries start in H2 2026 with MI450 GPUs; total capacity targeted at 6GW.
- •Beyond GPUs, Meta will also purchase AMD CPUs, including a customized variant.
- •The agreement includes a performance-linked warrant tied to stock milestones.
- •Meta maintains a multi-vendor strategy alongside Nvidia while expanding AI infrastructure.
Frequently Asked Questions about AMD clinches second mega chip supply deal, this time with Meta
1What is the main topic?
The article reports a multi‑year AMD–Meta agreement for AI chips worth up to $60 billion, beginning with MI450 GPUs and including AMD CPUs.
2When do shipments begin and what hardware is included?
Initial deliveries are slated for H2 2026, starting with AMD’s MI450 flagship GPUs, alongside purchases of AMD CPUs including a customized variant.
3How large is the planned compute capacity?
The reported framework targets a total of 6 gigawatts of compute capacity over the life of the deal.
4How does this impact Meta’s chip strategy?
It underscores Meta’s multi‑vendor approach—adding AMD alongside existing partnerships such as Nvidia—to scale training and inference infrastructure.
