San Francisco, Feb 24, 2026, 04:58 (PST)
Advanced Micro Devices said Tuesday that Meta Platforms has agreed to purchase as much as $60 billion worth of its AI chips over a five-year stretch—part of a broader supply deal that could let the Facebook parent take up to a 10% stake in AMD. Shares of the chipmaker jumped more than 10% ahead of the open. AMD CEO Lisa Su described Meta’s commitment as “a big bet.” (Reuters)
The deal arrives just as America’s largest tech firms scramble to lock in AI computing power, with chips and electricity now just as limiting as code itself. Bloomberg, citing Su, put the deals at “double-digit billions” of dollars per gigawatt of capacity. (Bloomberg)
A warrant gives the buyer the right to pick up company stock at a fixed price. In its latest filing, AMD disclosed it handed Meta a performance-based warrant covering as many as 160 million shares at $0.01 apiece. Vesting is linked not only to shipments and purchases totaling up to 6 gigawatts of its Instinct GPUs—a metric that’s central to data center scaling—but also to share price hurdles, which can go as high as $600. Other technical and commercial criteria apply, too. The warrant expires Feb. 23, 2031. (SEC)
AMD is rolling out its first deployment with a custom Instinct GPU, tailored from the MI450 architecture specifically for Meta’s workloads. The chipmaker described the project as centered on “inference” compute—when a trained AI model starts generating results. Initial shipments covering the first gigawatt are slated for the back half of 2026, using the Helios rack-scale setup with EPYC “Venice” CPUs and ROCm, AMD’s AI software stack. (AMD)
Meta’s pitch? A buffer against relying too much on a single chip supplier as it ramps up data center capacity for Facebook, Instagram and WhatsApp. “This is an important step for Meta as we diversify our compute,” Chief Executive Mark Zuckerberg wrote in a blog post unveiling the pact. (Facebook)
AMD CFO Jean Hu sees the tie-up delivering “substantial multi-year revenue growth” and boosting “non-GAAP earnings per share”—a profit measure that excludes certain charges. In the same release, AMD named Meta as a key customer for both its upcoming EPYC “Venice” chips and a future processor, “Verano,” which targets strong performance per dollar and per watt. (Advanced Micro Devices, Inc.)
The scale and timeline of the deal got a sharp reaction from investors. AMD shares surged roughly 14.5% in premarket action after the news broke, Barron’s reported. (Barron’s)
The Meta-AMD tie-up lands just as Nvidia is making a bigger play for turf where Intel and AMD have historically held sway on CPUs—and where Qualcomm leads in Arm-powered Windows laptops. Nvidia’s got its own Windows PC system-on-chip in the works, with Dell and Lenovo preparing to launch notebooks and desktops built on it later this year, according to Computerworld, which cited sources familiar with the project. Gartner’s Rishi Padhi notes a consumer model would need “lower compute power” plus a unified memory layout to keep laptop heat and battery usage in check. (Computerworld)
Nvidia has already partnered with MediaTek for the GB10, a chip that combines Arm CPU cores and Nvidia graphics, targeting high-end AI developer systems. Now, The Register points out, the real test is if Nvidia can adapt that approach for regular Windows PCs—hitting slimmer budgets and power requirements. (The Register)
Meta’s deal with AMD doesn’t lock in the money up front, and the equity kicker isn’t all at once, either. The Financial Times says the warrants come in tranches, tied to Meta’s chip purchases. It’s a setup that could deliver bigger gains if everything clicks—deployments on track, demand steady—but it also means either side could feel the hit if AI spending slips, projects fall behind, or the chips don’t deliver. (Financial Times)
Nvidia is eyeing a return as “the brain” inside consumer PCs, The Wall Street Journal reported, highlighting the way the AI hardware battle is moving beyond data centers and into chips for everyday devices. (Wsj)
