Meta strikes up to $100B AMD chip deal as it chases ‘personal superintelligence’

Meta has struck a landmark deal with AMD, committing to purchase up to $100 billion worth of the chipmaker's hardware to power its aggressive AI ambitions. The agreement, which will drive approximately six gigawatts of data center power demand, centers on AMD's MI540 series of GPUs and its latest generation of CPUs. In a unique financial arrangement, AMD has issued Meta a performance-based warrant for up to 160 million shares—roughly 10% of the company—for just $0.01 each. The full stock award is structured to vest alongside certain milestones, with the final tranche contingent on AMD's share price reaching $600, a significant jump from its current $196.60.

This deal represents a major strategic shift for Meta as it seeks to reduce its reliance on Nvidia, the current leader in AI chips. AMD CEO Lisa Su highlighted the surging demand for CPUs in AI inference, noting they are efficient, easier to scale, and offer an alternative to being locked into a single vendor. The partnership follows a similar equity-for-chips deal between AMD and OpenAI last October, signaling a growing trend in the industry.

For Meta, this is a critical component of its plan to invest at least $600 billion in U.S. data centers and AI infrastructure over the coming years, with a projected capital expenditure of $135 billion in 2026 alone. CEO Mark Zuckerberg framed the AMD partnership as 'an important step' in diversifying compute resources and advancing toward 'personal superintelligence'—AI systems designed to deeply understand and empower individuals. This move comes just weeks after Meta also expanded its data center agreements with Nvidia, indicating a multi-vendor strategy while its in-house chip development reportedly faces delays.