What happened
AMD agreed to sell Meta Platforms up to US$60 billion worth of AI chips over five years, including a commitment for six gigawatts of power capacity, starting with one gigawatt of MI450 flagship processors in the second half of 2026. The agreement also covers custom central processing units, tuned for Meta's specific needs across two generations, with Meta contributing to the MI450's inference optimisation. As part of the deal, AMD will issue Meta a warrant for 160 million shares, vesting with performance targets up to a $600 stock price.
Why it matters
Meta secures long-term AI chip supply and influences hardware design, reducing reliance on single vendors. For procurement teams and platform engineers, Meta's equity stake in AMD and co-development of inference-optimised chips signal a strategic shift towards deeper supplier integration and cost-efficient AI operations. This follows AMD's similar pact with OpenAI last year, highlighting a trend of major AI consumers locking in supply and influencing chip design.
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