Meta and AMD announce 6-gigawatt GPU deal as part of AI buildout

Meta (META) and AMD (AMD) are entering into a multi-year statement that volition spot Meta acquisition upward of 6 gigawatts worthy of AI chips arsenic portion of its monolithic AI buildout.

As portion of the deal, announced Tuesday, AMD volition contented Meta 160 cardinal shares of communal banal that volition vest successful a bid of tranches if AMD hits definite milestones, the archetypal of which volition deed erstwhile AMD ships its archetypal 1 gigawatts of chips.

AMD banal closed astatine $196.60 connected Monday.

“We expect this concern to thrust important multi-year gross maturation and beryllium accretive to our non-GAAP net per share, marking different important measurement guardant successful delivering connected our ambitious semipermanent fiscal model,” AMD CFO Jean Hu said successful a statement.

“The performance-based operation besides tightly aligns AMD and Meta astir execution and semipermanent worth creation.”

The archetypal GPUs, AMD’s MI450 line, volition beryllium deployed successful the company’s Helios rack-scale information halfway systems implicit with EPYC CPUs successful the 2nd fractional of the year.

Meta says it volition besides acquisition a ample further CPUs including AMD’s Venice spot and its next-generation Verano processor. CPUs are becoming an progressively important constituent for AI information centers arsenic companies look toward moving agentic AI services and absorption connected inference, oregon running, models.

Last week, Meta announced a abstracted multi-year, multi-year statement with AMD rival Nvidia (NVDA) that volition spot the spot shaper supply Meta with millions of its Blackwell and Rubin GPUs.

Nvidia besides said Meta volition big the archetypal large-scale deployment of its Grace CPU servers. Nvidia usually pairs its Grace CPU with 2 of its Blackwell oregon Blackwell Ultra processors to signifier its GB200 and GB300 superchips that slot into its rack-scale platforms.

Meta’s statement with AMD comes arsenic the institution is acceptable to walk upwards of $135 cardinal successful superior expenditures passim 2026 arsenic portion of its AI enlargement plans. That volition wage for everything from information halfway operation and chips to grooming models.

Meta isn’t the lone institution spending large connected AI this year. Meta, Amazon (AMZN), Google (GOOG, GOOGL), and Microsoft (MSFT) program to collectively walk immoderate $650 cardinal connected AI.

That’s fixed immoderate inventors intermission arsenic they digest whether the investments volition carnivore fruit. Meta has fared the champion of the radical of large spenders with shares down conscionable 2.5% since it reported net connected Jan. 28 and announced its investing plans.

Google banal has dropped 8.7% since its ain news, portion Amazon has fallen 11.9%. Microsoft, however, has been hammered the astir since revealing its spending strategy, declining 15.5%.