$100B Deal: Meta’s AI Chip Pact With AMD Could Shake Up Tech Industry
Meta just signed a deal with AMD worth up to $100 billion for 6 gigawatts of custom AI computing capacity — and as part of the agreement, Meta gets warrants to buy roughly 10% of AMD's stock at one cent per share, vesting as chip deliveries hit milestones. Coming days after Meta's separate massive Nvidia GPU deal, this is a clear diversification play: Meta spent $72 billion on AI infrastructure last year and plans up to $135 billion this year, and doesn't want to depend on a single supplier. For AMD, it's the biggest win yet in its fight against Nvidia's 90% market share — and the creative financing structure suggests this is becoming the template for how AI chip deals get done.