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Meta Picks AMD for Up to 6GW of AI Chips in Equity-Linked Multi-Year Deal

The structure ties long-term deliveries to equity milestones to align execution and diversify Meta’s compute sources.

Overview

  • Meta and AMD signed a multi‑year agreement to deploy up to 6 gigawatts of Instinct GPUs based on the MI450 architecture along with multiple generations of EPYC CPUs, including custom variants optimized for Meta’s inference workloads.
  • Shipments supporting the first 1‑gigawatt deployment are scheduled to begin in the second half of 2026.
  • AMD granted Meta a performance‑based warrant for up to 160 million shares at $0.01, vesting by shipment milestones, technical and commercial criteria, and stock‑price targets that rise to $600.
  • AMD said the arrangement represents up to about $60 billion of chip sales over five years, while some reports and analysts estimate the full program could exceed $100 billion.
  • The deal follows Meta’s recent Nvidia agreement and reinforces a multi‑vendor strategy alongside ongoing in‑house processor development.