Mirror Review
February 25, 2026
Meta signed a multi-million dollar deal with Advanced Micro Devices (AMD) to supply high-performance AI chips for its data centers.
This AMD Meta AI Chip Deal represents one of the largest infrastructure agreements in the history of the semiconductor industry.
Here’s everything you need to know about it.
What is the AMD Meta Deal About?
According to the AMD Meta AI Chip Deal, Meta will purchase up to 6 gigawatts (GW) of AI compute capacity from AMD over the next five years. This deal is estimated to be worth over $100 billion and includes a unique agreement where Meta can earn up to a 10% ownership stake in AMD.
By diversifying its hardware, Meta is ensuring it has the massive processing power required to run the next generation of AI models without relying on just one source.
The scale of this partnership is massive. To put it in perspective, one gigawatt of power can provide electricity to roughly 750,000 homes. Meta is locking in six times that amount specifically for AI.
Technical Details of the Meta AMD Chip Deal
The AMD Meta AI Chip agreement is more than just a purchase order; it is a deep technical collaboration.
Starting in the second half of 2026, AMD will begin shipping custom-designed Instinct MI450 GPUs specifically optimized for Meta’s unique workloads.
These chips will be housed in AMD Helios rack-scale systems, a specialized hardware design the two companies developed together through the Open Compute Project.
This partnership also secures Meta as the lead customer for AMD’s 6th Gen EPYC processors, codenamed “Venice” and “Verano.” These CPUs are designed to handle high-demand AI tasks with extreme energy efficiency.
| Component | Role in the Deal |
| Custom MI450 GPU | Optimized for Meta’s specific AI inference and training. |
| EPYC “Venice” & “Verano” | Next-generation CPUs to manage server workloads. |
| Helios Architecture | Jointly developed rack system for rapid scaling. |
| ROCm Software | The open-source platform used to run the AI hardware. |
Financial Milestones and Stock Warrants
A unique part of the Meta AMD Deal is the financial structure.
AMD has issued Meta performance-based warrants for up to 160 million shares of AMD stock. These shares vest in tranches as Meta reaches specific deployment milestones, beginning with the first 1 GW of hardware.
The final portion of these shares only vests if AMD’s stock price hits a target of $600 per share. This effectively makes Meta a strategic partner with a direct interest in AMD’s long-term partnership success.
“I expect AMD to be an important partner for many years to come,” said Meta CEO Mark Zuckerberg. “This is an important step for Meta as we diversify our compute to deliver personal superintelligence.”
Why Meta is Partnering with AMD
The AMD Meta AI Chip Deal serves a very specific purpose in Meta’s broader “Meta Compute” initiative.
While Meta recently signed a separate deal with Nvidia, this agreement focuses on inference, which is the process of an AI model actually responding to user prompts in real-time.
With billions of people interacting with AI features on WhatsApp and Instagram, the cost of “inference” is a major concern.
Thus, custom chips like the MI450 allow Meta to run these features at a lower cost per watt, which is vital for maintaining a competitive edge.
AMD CEO Dr. Lisa Su emphasized the scale of this project, stating, “This multi-year, multi-gen collab across Instinct GPUs, EPYC CPUs and rack-scale AI systems aligns our plans to deliver high-performance, energy-efficient infrastructure for Meta’s workloads, accelerating one of the largest AI deployments and placing AMD at the center of the global AI buildout.”
Long-Term Impact on the AI Market
The Meta AMD Deal proves that the appetite for AI hardware is not slowing down. By committing to 6 gigawatts of power, Meta is preparing for a decade of growth. For the industry, it signals that there is room for multiple major hardware players to thrive.
Meta is now combining its own in-house silicon (MTIA) with hardware from both AMD and Nvidia.
This “portfolio approach” protects the company from supply chain shortages and gives it more power to negotiate prices.
End Note
The AMD Meta AI Chip Deal is a turning point that establishes AMD as a primary supplier for the world’s largest data centers.
It provides Meta with the guaranteed capacity needed to build “personal superintelligence” while giving them a financial stake in the hardware that powers it.
As the first 1 GW of capacity rolls out in 2026, this partnership will likely set the standard for how tech giants build their AI foundations moving forward.
Maria Isabel Rodrigues
