Meta (META) and AMD (AMD) are entering into a multi-year agreement that will see Meta purchase upward of 6 gigawatts worth of AI chips as part of its massive AI buildout.
As part of the deal, announced Tuesday, AMD will issue Meta 160 million shares of common stock that will vest in a series of tranches if AMD hits certain milestones, the first of which will hit when AMD ships its first 1 gigawatts of chips.
AMD stock closed at $196.60 on Monday.
“We expect this partnership to drive substantial multi-year revenue growth and be accretive to our non-GAAP earnings per share, marking another significant step forward in delivering on our ambitious long-term financial model,” AMD CFO Jean Hu said in a statement.
“The performance-based structure also tightly aligns AMD and Meta around execution and long-term value creation.”
The first GPUs, AMD’s MI450 line, will be deployed in the company’s Helios rack-scale data center systems complete with EPYC CPUs in the second half of the year.
Meta says it will also purchase a large additional CPUs including AMD’s Venice chip and its next-generation Verano processor. CPUs are becoming an increasingly important component for AI data centers as companies look toward running agentic AI services and focus on inference, or running, models.
Last week, Meta announced a separate multi-year, multi-year agreement with AMD rival Nvidia (NVDA) that will see the chip maker provide Meta with millions of its Blackwell and Rubin GPUs.
Nvidia also said Meta will host the first large-scale deployment of its Grace CPU servers. Nvidia usually pairs its Grace CPU with two of its Blackwell or Blackwell Ultra processors to form its GB200 and GB300 superchips that slot into its rack-scale platforms.
Meta’s agreement with AMD comes as the company is set to spend upwards of $135 billion in capital expenditures throughout 2026 as part of its AI expansion plans. That will pay for everything from data center construction and chips to training models.
Meta isn’t the only company spending big on AI this year. Meta, Amazon (AMZN), Google (GOOG, GOOGL), and Microsoft (MSFT) plan to collectively spend some $650 billion on AI.
That’s given some inventors pause as they digest whether the investments will bear fruit. Meta has fared the best of the group of big spenders with shares down just 2.5% since it reported earnings on Jan. 28 and announced its investing plans.
Google stock has dropped 8.7% since its own news, while Amazon has fallen 11.9%. Microsoft, however, has been hammered the most since revealing its spending strategy, declining 15.5%.
