Meta to Acquire $100B in AMD AI Computing Power
Meta Platforms has agreed to acquire 6 gigawatts of AI computing power from AMD in a transaction valued at over $100 billion. The deal could reportedly give Meta up to 10% ownership in AMD's stock, highlighting the massive capital investment required for AI infrastructure.
- The deal is structured as a multi-year, multi-generation partnership for up to 6 gigawatts of AMD's AI computing power, with the first 1-gigawatt deployment scheduled for the second half of 2026. - Instead of a direct cash-for-equity transaction, AMD has issued Meta performance-based warrants for up to 160 million shares at an exercise price of $0.01 per share. These warrants will vest in tranches as Meta reaches specific GPU shipment milestones and AMD's stock price hits certain thresholds, with a final target of $600 per share. - The hardware involved includes custom versions of AMD's Instinct MI450 GPUs and their 6th Generation Epyc CPUs, codenamed "Venice" and "Verano". This positions Meta as a launch customer for these new chip architectures. - This transaction is part of Meta's significantly increased capital expenditure on AI, with a projected spend of $115 billion to $135 billion in 2026, a substantial increase from the $72.2 billion spent in 2025. - This deal mirrors a similar agreement AMD struck with OpenAI in October 2025, which also involved a 6-gigawatt computing power purchase and a comparable performance-based warrant structure for up to 10% of AMD's stock. - The 6 gigawatts of computing power is a massive amount of energy, equivalent to the electricity consumed by approximately 5 million U.S. households in a year. - This move is part of Meta's broader strategy to diversify its AI chip suppliers, as evidenced by a separate multi-year partnership with Nvidia to deploy millions of their Blackwell and Rubin GPUs. - With AMD's market capitalization around $343 billion as of February 2026, a 10% stake represents a significant potential ownership position for Meta in a key supplier.
