Meta Platforms has secured a five-year agreement with Advanced Micro Devices (AMD) to purchase artificial intelligence chips valued at up to $60 billion, a deal that also allows Meta to acquire as much as 10% of AMD’s stock. The agreement, announced Tuesday, will see AMD issue approximately 160 million shares of common stock to Meta, delivered in installments tied to operational milestones, beginning with the shipment of chips capable of powering data centers with gigawatt-level capacity.
The deal underscores Meta’s aggressive expansion into AI infrastructure. The company plans to spend over $135 billion this year to bolster its AI capabilities, according to reports. The first graphics processing units from AMD’s MI450 series are slated for deployment in data center systems during the latter half of 2026. Meta has also been procuring other key chips, including the “Venice” chip, critical for operating its AI data centers.
This investment in AMD chips is occurring in parallel with a separate agreement Meta recently finalized with Nvidia to supply millions of Blackwell and Rubin chips. The AMD deal was announced by both companies on Tuesday, with AMD confirming the sale of AI chips to Meta Platforms.
The stock component of the agreement is structured around achieving specific operational targets. Meta’s stake in AMD will grow as AMD delivers on its commitments to supply the necessary chips to power Meta’s expanding data center infrastructure. The arrangement represents a significant financial commitment from Meta, signaling its long-term investment in AI and the hardware required to support it.