Meta to Buy AMD AI Chips, Potential 10% Stake in Deal Worth Over $100B

February 25, 2026 Rachel Kim – Technology Editor Technology

SAN FRANCISCO – Meta Platforms, the parent company of Facebook, has struck a multiyear agreement with Advanced Micro Devices (AMD) to purchase artificial intelligence chips and has been granted the opportunity to acquire up to a 10% stake in the chipmaker. The deal, announced on Tuesday, comes days after Meta revealed an expanded partnership with Nvidia for the supply of AI chips and related equipment.

The agreement centers around AMD’s MI450 chips, which will power Meta’s AI data centers. Shipments supporting the initial one-gigawatt deployment are slated to begin in the second half of 2026, with the overall agreement covering up to 6 gigawatts of GPU and CPU capacity. While a precise financial value hasn’t been disclosed, analysts estimate the deal could exceed $100 billion.

AMD will issue Meta a performance-based warrant for up to 160 million shares of its common stock, priced at $0.01 per share. These warrants will vest as Meta increases its chip purchases, with the first tranche becoming exercisable upon the delivery of the initial gigawatt of chips and subsequent tranches vesting as purchases scale to the full 6 gigawatts.

The move underscores the intensifying competition in the AI chip market, where Nvidia has held a dominant position. Nvidia initially tailored its graphics processing units (GPUs) for video games before adapting them for the computationally intensive task of training AI systems, a demand that surged with the rise of technologies like ChatGPT. AMD is now vying to capture a significant share of this rapidly expanding market.

“We are proud to expand our strategic partnership with Meta as they push the boundaries of AI at unprecedented scale,” said Dr. Lisa Su, chair and CEO of AMD, in a statement released by the company.

The partnership extends beyond chip supply, encompassing collaboration on silicon, systems, and software roadmaps. The first deployment will utilize a custom AMD Instinct GPU based on the MI450 architecture, optimized for Meta’s specific workloads, alongside 6th Gen AMD EPYC CPUs, codenamed “Venice,” and AMD’s ROCm software platform. The infrastructure will be built on the AMD Helios rack-scale architecture, jointly developed by AMD and Meta through the Open Compute Project.

Meta’s investment in AI infrastructure reflects its efforts to bolster its competitive standing against rivals like Google, and OpenAI. The company recently invested $14.3 billion in AI data company Scale and recruited its CEO, Alexandr Wang, to lead a team focused on developing “superintelligence.” In December, Meta also acquired AI startup Manus, signaling an aggressive push to integrate AI across its platforms.

Shares of AMD rose more than 9% in premarket trading following the announcement. The deal represents a significant win for AMD as it seeks to challenge Nvidia’s dominance in the AI chip sector. The long-term implications of the agreement for both companies, and the broader AI landscape, remain to be seen.