“Each gigawatt of compute is worth double-digit billions,” said AMD CEO Lisa Su (pictured).
Meta gets a warrant for up to 160 million AMD shares – representing about 10% of AMD – which delivers the shares in tranches tied to chip delivery milestones. AMD signed a similar deal with OpenAI last year.
“So no question Mark is very, very ambitious in what he wants to accomplish, and we want to use every aspect of our technology to really help Meta to accomplish that. Meta is making a big bet on AMD,” said Su during an investor call after yesterday’s announcement of the deal.
Meta also has a deal to buy Nvidia chips worth an estimated $50bn.
“We don’t believe that a single silicon solution will work for all of our workloads,” said Meta’s infrastructure chief Santosh Janardhan, “there’s a place for Nvidia, there’s a place for AMD and there’s a place for our own custom silicon as well. We need all three.”
Meta will also buy customised CPUs from AMD.
Meta’s 2026 capex budget is $115-135bn with datacentres a major focus. Last year it spent $72bn.
It is currently building a $10bn datacentre in Indiana and plans a $27bn datacentre in Louisiana.
Meta receives the warrants if and only if the AI systems are purchased from AMD and the stock price of AMD triples and holds at contracted dates.