AMD Strikes Meta Deal for Mutual Innovation
AMD and Meta have announced a joint agreement for the chipmaker to deliver 6 GW of AI capacity to Meta over a five-year period and for Meta to take a stake in AMD. The deal reveals ongoing competition against NVIDIA in the AI chip market, as well as AMD's goal to customize its chiplet architecture to meet the needs the world’s largest hyperscalers.
The new agreement takes an existing partnership between AMD and Meta “to the next level,” according to AMD CEO Lisa Su. It calls for AMD to deliver a custom GPU to Meta based on AMD’s forthcoming MI450 architecture and sixth-generation AMD EPYC CPUs (codenamed “Venice”), both of which are set for release in the second half of 2026. The chips will run AMD’s ROCm framework software and operate within AMD Helios racks.
AMD also has issued a warrant for Meta for up to 160 million shares of AMD common stock, which could give Meta a sizable ownership stake. The first tranche will vest with the first 1 GW of infrastructure, which is part of the 2H 2026 rollout. After that, tranches will vest in line with AMD stock price goals (which include an ambitious plan to achieve more than $20 of annual EPS within the next three to five years) and Meta’s realizing specific benefits from the arrangement.
Echoes of Similar Deals
The new contract with Meta echoes nearly exactly the terms of AMD’s deal with OpenAI announced in October 2025, which also calls for 6 GW of capacity over several years, plus a 10% stake in AMD.
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