Advanced Micro Devices has signed a multi-year deal to supply artificial intelligence chips to Meta Platforms. This agreement boosts AMD’s standing in the fast-growing AI infrastructure market.
Reuters reported that the deal could be worth up to $60 billion over five years, making it one of AMD’s biggest supply commitments so far. This agreement comes after a similar large-scale AI chip deal with OpenAI and shows AMD’s ongoing focus on high-performance AI accelerators.
Supply to Begin in 2026
As part of the deal, AMD will supply Meta with its new MI450 AI accelerators and custom central processing units designed for Meta’s performance and efficiency needs. Reuters says shipments should start in the second half of 2026.
RTE reported that AMD is set to deliver roughly six gigawatts of chip capacity over the duration of the agreement, beginning with one gigawatt of MI450 hardware later this year.
As part of the transaction structure, Meta has been granted the option — contingent on performance milestones — to acquire up to 160 million AMD shares through a warrant priced at one cent per share, potentially representing up to a 10% stake.
AI Capacity Race Intensifies
The agreement underscores the scale of Meta’s artificial intelligence build-out as it invests heavily in data center infrastructure to support generative AI training and inference workloads across its platforms.
AMD Chief Executive Lisa Su as describing Meta as “very, very ambitious” in its AI infrastructure plans. Meta’s infrastructure leadership indicated the company continues to source hardware from multiple vendors as it expands compute capacity.
U.S. News reported that this deal shows how competition among chipmakers is heating up, as large tech companies look to diversify their supply chains with the rising demand for AI chips.
Competitive Positioning
AMD has been working to establish itself as an alternative supplier in a market largely dominated by Nvidia. By securing multi-year commitments with major AI developers, the company is aiming to increase its share of the AI accelerator segment.
The size of the Meta deal shows that cloud and social media companies are securing long-term chip supplies to keep up with growing AI workloads.
The deal still needs to meet standard conditions, and more financial details will be shared in regulatory filings.
