{"id":"f-91677779fp1-f486e19d-a91d-588e-b871-5d56fe8336c5","title":"Meta and AMD Forge Groundbreaking AI Chip Partnership: A $60 Billion Deal Unveiled","description":"Explore the landmark five-year agreement between Meta Platforms and Advanced Micro Devices, involving up to $60 billion in AI chip purchases. This strategic collaboration aims to power Meta's advanced AI infrastructure and includes a potential stake in AMD.","timestamp":1772002623,"category":"technology","headline":"Meta and AMD Forge Groundbreaking AI Chip Partnership: A $60 Billion Deal Unveiled","modifiedHeadline":"Meta, AMD Seal $60 Billion AI Chip Deal","subCategories":["scid_bfd77859"],"subcategoriesName":["Big Tech"],"region":"IN","bundleMetaData":{"bundleId":"c35cfc57-1bba-4539-a24c-695ea99ac023","bundleTitle":"Mastering AI","cardData":null},"iabCategoryId":"597","fcSummary":"meta and amd are forging a $60 billion partnership to build ai infrastructure. the five-year agreement includes meta acquiring amd’s instinct gpus and next-gen EPYC cpus ('venice' & 'verano'). meta may also gain up to a 10% stake in amd, with a performance-based warrant tied to chip shipments. this collaboration aims to power meta’s ai systems and diversify its compute resources.","summary":"Meta & AMD partner in $60B AI chip deal! Meta secures GPUs & CPUs, potential AMD stake. A 5-yr agreement boosts AI infrastructure.","ctaUrl":"https://trends.glance.com/newz/Daily_Digest/IN/en/feedpost-specials/f-91677779fp1-f486e19d-a91d-588e-b871-5d56fe8336c5","sourceUrl":"https://trends.glance.com/newz/Daily_Digest/IN/en/feedpost-specials/f-91677779fp1-f486e19d-a91d-588e-b871-5d56fe8336c5","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/VZm0xLQSiLD0.webp","content":"

\n Discover how a colossal $60 billion pact between Meta and AMD will reshape AI infrastructure, featuring AMD's cutting-edge GPUs and CPUs and a unique strategic alignment.\n

A Landmark Chip Accord

In a significant development for the artificial intelligence sector, Meta Platforms has committed to acquiring a substantial volume of AI chips from Advanced

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Micro Devices, with a total value potentially reaching up to $60 billion. This multi-year commitment, spanning five years, signifies a deep strategic alliance between the two technology giants. As part of this arrangement, Meta may also acquire as much as a 10% ownership stake in AMD. The core of this collaboration revolves around powering Meta's next-generation artificial intelligence infrastructure. This involves a substantial 6-gigawatt agreement specifically designed to utilize AMD's Instinct Graphics Processing Units (GPUs). The initial phase of these shipments, crucial for the first gigawatt development, is slated to commence in the latter half of 2026, indicating a long-term vision for AI compute expansion.

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Exclusive Customer Role

Beyond the high-performance GPUs, Meta will also assume a pivotal role as a primary customer for AMD's latest central processing units (CPUs). This includes adopting AMD's sixth-generation EPYC processors, codenamed 'Venice', and a forthcoming next-generation EPYC processor known as 'Verano'. This dual commitment to both GPUs and CPUs underscores Meta's comprehensive strategy for building a robust and advanced AI ecosystem. Furthermore, the partnership introduces a unique element of strategic alignment: AMD has issued Meta with a performance-based warrant for up to 160 million shares. This warrant is structured to vest upon the achievement of specific milestones directly tied to the volume of chip shipments, which will be measured up to a total of 6 gigawatts. This incentivizes a collaborative effort towards achieving shared goals and strengthens the bond between the two firms.

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Shared Vision for AI

The implications of this partnership extend beyond mere transactional agreements, reflecting a shared vision for the future of artificial intelligence. Meta's founder and chief executive, Mark Zuckerberg, expressed enthusiasm for a long-term collaboration with AMD, emphasizing the deployment of efficient inference compute and the delivery of what he termed 'personal superintelligence'. He highlighted this as a crucial step for Meta in diversifying its compute resources, anticipating AMD to be an integral partner for many years. From AMD's perspective, this collaboration is projected to generate significant and sustained revenue growth over multiple years. This news was met with considerable market optimism, as AMD's futures saw a notable surge of 10% in pre-market trading, reaching $216.35, while Meta's stock experienced a slight dip of 0.3% to $635.20. The chair and CEO of AMD, Lisa Su, articulated that this multi-year, multi-generation collaboration across their Instinct GPUs, EPYC CPUs, and rack-scale AI systems will align roadmaps to deliver high-performance, energy-efficient infrastructure meticulously optimized for Meta's specific workloads, thereby accelerating one of the industry's most substantial AI deployments and positioning AMD at the forefront of global AI infrastructure development.

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Meta and AMD Forge Groundbreaking AI Chip Partnership: A $60 Billion Deal Unveiled

SUMMARY