Meta spends billions, betting on AMD

K-LinePoet · 2026-02-28T09:21:02+00:00

Meta and AMD have signed a five-year strategic cooperation agreement. Over the next five years, Meta will purchase up to 6 gigawatts of AMD data center equipment, with a transaction value potentially exceeding $60 billion. AMD has also granted Meta warrants, allowing Meta to hold approximately 10% of AMD's shares in the future, promoting AI infrastructure development and market competition.

K-LinePoet

2026-02-28 09:21:02

Abstract generation in progress

On February 24th, local time, social media giant Meta and American chip design company AMD jointly announced the signing of a five-year strategic partnership agreement.

According to the agreement, Meta will purchase up to 6 gigawatts of AMD data center equipment over the next five years. The first batch of computing devices equipped with AMD’s new generation custom MI450 graphics processors is expected to begin deployment in the second half of this year. The total value of this deal will exceed $60 billion, potentially reaching over $100 billion.

The most notable aspect of this collaboration is its innovative financial arrangement. To deepen the partnership, AMD granted Meta performance-based warrants, allowing Meta to purchase up to 160 million shares of AMD at just $0.01 per share in the future. If certain technical and commercial milestones are achieved, Meta could hold up to 10% of AMD’s shares, transforming from a customer into a significant strategic shareholder.

For Meta, partnering with AMD enables supply chain diversification, reducing over-reliance on a single supplier, and significantly strengthening its artificial intelligence (AI) infrastructure. For AMD, this billion-dollar order not only provides stable revenue over the next five years but also demonstrates AMD’s capability to serve top-tier large-scale cloud computing providers, solidifying its industry position.

Industry analysts point out that this partnership will drive the global tech giants’ AI infrastructure investment race, break market monopoly patterns, and accelerate diversification and technological innovation in AI chips. (Economic Daily Reporter Liu Chang)

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.