Meta Strikes Multibillion-Dollar Chip Deal With AMD, Takes Up to 10% Equity Stake Option

Advanced Micro Devices and Meta Platforms announced a major multiyear chip supply agreement on Tuesday in which Meta will purchase billions of dollars' worth of AMD semiconductors for AI infrastructure and data centers, while also receiving the option to acquire a financial interest of up to 10% in the chipmaker. AMD confirmed it will produce chips tailored to Meta's specifications, with shipments expected to begin in the second half of 2026.

Under the deal, Meta will acquire AMD chips equivalent to a capacity of up to six gigawatts of electricity — sufficient to power over five million households. The agreement is part of Meta's stated strategy to "diversify" the technology underlying its data center infrastructure and reduce dependence on any single supplier.

Following the announcement, AMD's stock surged over 6% in early trading, while Nvidia's shares dipped by roughly 2%.

The deal mirrors a similar arrangement AMD struck with OpenAI in October 2025, in which the chipmaker also offered equity in exchange for chip commitments. It is AMD's most aggressive move yet to close the competitive gap with Nvidia in the AI processor market.

Meta, which has committed between $115 billion and $135 billion in capital expenditures for 2026, continues to be a significant Nvidia customer but is now explicitly spreading procurement across multiple suppliers.

The deal arrived days after Nvidia itself announced a separate major agreement with Meta involving standalone Grace and Vera central processing units for data center workloads. The dual announcements underscore how Meta is building out AI infrastructure at a pace that has given it unusual leverage with multiple chip manufacturers simultaneously, as the social media giant seeks to expand compute capacity to support its Llama AI models and advertising-targeting systems.

Read the original reporting at The New York Times.