Meta Platforms has just handed Advanced Micro Devices a golden ticket to the AI chip party, agreeing to snap up enough computing power to light up small countries—up to 6 gigawatts worth of AMD’s Instinct GPUs over multiple years.
Announced today, the deal has AMD’s stock popping like champagne corks, surging as much as 14% in early trading.
For AMD, this is less a partnership and more a multibillion-dollar love letter. Analysts peg the potential value north of $60 billion, possibly even into triple-digit billions depending on how the power scales.
Meta gets a diversified supply chain that isn’t all eggs in the Nvidia basket, while AMD scores a massive validation vote that could quiet doubters about its ability to muscle into the AI data center game.
Meanwhile, the broader market watches nervously as the big tech spend-a-thon rolls on—Meta alone eyeing $135 billion in capex this year—prompting whispers that someone, someday, might have to explain where all this electricity is coming from.
Meta, never one to put all its processors in one basket, signed this blockbuster just days after committing to millions of Nvidia’s Blackwell and upcoming Rubin GPUs. Now AMD joins the roster with its MI450-based custom chips, optimized for Meta’s workloads, rolling out in Helios rack-scale systems starting in the second half of 2026.
Throw in a hefty order of next-gen EPYC CPUs like Venice and Verano, and you’ve got Meta hedging its bets across the board.
The cherry on top? AMD is issuing Meta warrants for up to 160 million shares—potentially 10% of the company—that vest as milestones get hit, starting with the first gigawatt shipped. It’s the corporate equivalent of saying, “If we deliver, you get a piece of the action.” Performance-based incentives so tight they could double as friendship bracelets.
This comes amid the great AI infrastructure arms race, where Meta, Amazon, Google, and Microsoft are collectively plotting to drop around $650 billion on the tech this year. Investors have been jittery, with some stocks taking hits since earnings revealed the spending plans.
Meta’s held up best so far, down only modestly, while chipmakers face questions about custom silicon from the hyperscalers stealing share. Yet here Meta is, doubling down on third-party GPUs rather than going fully rogue with in-house designs.
AMD’s CFO called it a “significant step forward” for their long-term model, and for once the jargon feels understated. In an era where AI models guzzle power like teenagers at an all-you-can-eat buffet, Meta’s shopping spree suggests the hunger isn’t slowing down anytime soon.
Whether it all pays off remains the trillion-dollar question—but for now, AMD shareholders are toasting with whatever non-electric beverage they can find.
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