Meta plans to purchase potentially up to $100 billion worth of AI chips from Advanced Micro Devices (AMD), a multiyear agreement that could drive roughly six gigawatts of additional data center power demand.
As part of the deal, AMD issued Meta a performance-based warrant for up to 160 million shares of AMD common stock, approximately 10% of the company, priced at $0.01 per share. The award vests alongside specific milestones and is tied to AMD’s stock performance. According to The Wall Street Journal, AMD shares would need to reach $600 for Meta to receive the final tranche. AMD closed Monday at $196.60.
GPUs, CPUs, and AI Inference
Under the agreement, Meta will purchase AMD’s MI540 series GPUs along with its latest-generation CPUs. While GPUs remain central to AI model training, CPUs are becoming increasingly important in inference workloads — powering AI systems once they’re deployed. CPUs offer scalability, efficiency, and reduce dependence on a single supplier.
“The CPU market is absolutely on fire,” AMD CEO Lisa Su said during an investor briefing, citing growing demand as inference and agentic AI systems scale.
AMD has been steadily gaining traction as AI companies seek alternatives to Nvidia, the dominant AI chip provider known for commanding premium pricing. In October, AMD struck a similar equity-linked chip agreement with OpenAI.
Meta’s Push Toward “Personal Superintelligence”
Meta CEO Mark Zuckerberg described the AMD partnership as a key step in diversifying the company’s compute stack while pursuing what he calls “personal superintelligence” — AI systems designed to deeply understand and empower individuals in everyday life.
Meta has pledged to invest at least $600 billion in U.S. AI infrastructure over the coming years, including projected capital expenditures of $135 billion in 2026 alone. Recently, the company unveiled plans for a $10 billion gas-powered data center campus in Indiana capable of delivering one gigawatt of compute capacity.
The AMD agreement follows closely on the heels of another multiyear deal expanding Meta’s data centers with millions of Nvidia’s latest CPUs and GPUs. At the same time, Meta continues developing its own in-house AI chips, though those efforts have reportedly faced delays.
Together, the moves signal an aggressive scaling strategy: diversify suppliers, secure long-term chip access, and build out massive infrastructure to support next-generation AI systems.
