Meta hits $100B AMD chip deal as it chases ‘human intelligence’

Meta plans to buy up to $100 billion worth of AMD chips, enough to power about six gigabytes of data center electricity, the companies announced Tuesday.

As part of the multi-year agreement, AMD has given Meta a document based on the performance of up to 160 million shares of AMD common stock – or about 10% of the company – at $ 0.01 each, designed to coincide with certain milestones. The full stock award depends on AMD’s share price, which would need to hit $600 for Meta to receive its final share, on the Wall Street Journal. AMD stock closed at $196.60 on Monday.

Under the agreement, Meta will purchase AMD’s MI540 GPUs and its latest CPU generation. CPUs are increasingly becoming the pillar of the AI ​​inference compute stack because they are efficient, easy to scale, and don’t tie companies to Nvidia alone.

AMD has been growing slowly as the AI ​​industry looks to reduce its reliance on Nvidia, which has long been a leader in AI chips and has paid a lot of money for the title. last october, AMD and OpenAI did the same do a fair trade to agree to buy chips.

The CEO of Meta, Mark Zuckerberg, said that the company’s cooperation with AMD “is an important step” because it differentiates its computers and works on “personal intelligence.” Zuckerberg has defined artificial intelligence as AI systems designed to understand and empower people in their daily lives.

Meta has promised to invest $600 billion in data centers in the US and AI infrastructure over the next few years, including expected investment $135 billion in 2026. Meta recently revealed plans for $10 billion gas powered data center campus in Indiana they created 1 gigawatt of computing capacity.

AMD’s partnership comes weeks after Meta hit a multi-year partnership expanding its data centers with millions of the latest Nvidia CPUs and GPUs. The Facebook developer is also working on its home chips but has said he says hit late.