On Tuesday, the companies declared Meta’s intention to procure AMD chips potentially valued at up to $100 billion, a quantity sufficient to energize approximately six gigawatts of data center power.
In connection with the multi-year pact, AMD has granted Meta a performance-based warrant for a maximum of 160 million ordinary shares of AMD — representing approximately a tenth of the firm — at a price of $0.01 per share, designed to vest upon the achievement of specific benchmarks. The complete equity grant is contingent upon AMD’s share price, which must attain $600 for Meta to obtain its concluding portion, according to The Wall Street Journal. On Monday, AMD’s shares concluded trading at $196.60.
Pursuant to the arrangement, Meta is slated to acquire AMD’s MI540 series of GPUs along with its most recent line of CPUs. Central processing units are progressively transforming into a fundamental component of the AI inference processing architecture, given their efficiency, simplified scalability, and the fact that they do not exclusively bind enterprises to Nvidia.
AMD has gradually been making headway as artificial intelligence companies seek to diminish their dependence on Nvidia, a long-established frontrunner in AI chips that has commanded a higher price for this distinction. In the previous October, AMD and OpenAI reached a comparable agreement, exchanging equity for a commitment to procure processors.
Mark Zuckerberg, Meta’s Chief Executive, stated that the collaboration between the company and AMD represents “a significant stride” as it broadens its computing capabilities and strives for “individualized superintelligence.” Zuckerberg characterizes individualized superintelligence as artificial intelligence frameworks engineered to profoundly comprehend and augment human lives daily.
Meta has committed to allocating funds, a minimum of $600 billion, towards data centers and AI infrastructure across the U.S. during the upcoming years, with an anticipated capital outlay of $135 billion specifically in 2026. Meta recently disclosed blueprints for a $10 billion natural gas-fueled data center complex located in Indiana, conceived to provide 1 gigawatt of processing capability.
The collaboration with AMD follows just a few weeks after Meta finalized a multi-year arrangement to augment its data centers using millions of Nvidia’s newest central and graphics processing units. The creator of Facebook is additionally developing its proprietary internal processors, though it has reportedly encountered setbacks.
Techcrunch event
Boston, MA
|
June 9, 2026
{content}
Source: {feed_title}