Meta and AMD announced one of the largest AI hardware agreements to date to fuel the next phase of large-scale artificial intelligence deployment. The agreement, valued at more than $100 billion, centers on AMD supplying customized AI accelerators and rack-scale infrastructure for Meta’s expanding data-center network, with large-scale deployments expected to begin in 2026. AMD has also agreed to sell up to $60 billion worth of AI chips over five years, and the structure of the agreement allows Meta to acquire as much as a 10% stake in the chipmaker. This comes months after AMD completed a similar partnership with OpenAI.
At the core of the agreement is AMD’s commitment to deliver custom AI accelerators based on its next-generation MI450 architecture, along with CPUs, high-bandwidth memory systems, and rack-scale server platforms optimized for hyperscale deployments. These chips are designed primarily for AI inference workloads, which are critical for delivering personalized feeds, generative AI features, real-time translation, safety monitoring, augmented-reality overlays, and conversational assistants across Meta’s ecosystem. Unlike traditional GPU deployments, the systems will be delivered as integrated rack-scale units engineered for dense compute throughput, fast interconnect speeds, and improved performance per watt.
The Mark Zuckerberg-led firm plans to build up to 6 gigawatts of AI computing capacity under the initiative, placing the project among the largest data-center expansions ever undertaken. One gigawatt of compute infrastructure can require tens of thousands of AI servers and draw power comparable to a small city. The first gigawatt is expected to come online in the early deployment phase, with capacity expanding as new facilities are constructed and connected to power grids and cooling systems. Meta’s investment aligns with its broader AI strategy. Earlier, the company had indicated it could spend up to $135 billion on AI infrastructure in 2026.
At the same time, the financial structure of the deal includes an equity incentive designed to align long-term strategic interests. AMD has issued a performance-based warrant enabling the social media behemoth to acquire up to 160 million shares, potentially representing about a 10% ownership stake if fully vested.
For AMD, the agreement represents a major strategic victory in the highly competitive AI chip market. The sector has been dominated by specialized accelerators from competitors, but large hyperscale partnerships provide AMD with long-term revenue visibility and validation of its AI architecture roadmap. The move becomes even more significant amid an escalating global race to build AI infrastructure. Major technology firms are investing hundreds of billions of dollars in data centers, chip design, networking hardware, and energy procurement. Estimates suggest that annual spending on AI infrastructure could surpass $630 billion by 2026.
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