{"id":"f-993d06a2ab-d5b8e921-653a-5114-853b-54590be50a33","title":"Meta, AMD ink multi-year deal to deploy 6 GW AI GPUs; performance warrant linked to 10% stake","description":"Meta Platforms has entered a multi-year pact with AMD to deploy up to 6 gigawatts of GPUs across its AI data centers. The agreement, which includes a performance-based warrant for nearly a 10% stake, signals Meta’s aggressive expansion in AI infrastructure.","timestamp":1772083020,"category":"technology","headline":"Meta, AMD ink multi-year deal to deploy 6 GW AI GPUs; performance warrant linked to 10% stake","modifiedHeadline":"Meta Signs Deal for 6GW AI GPUs with AMD","subCategories":["scid_bfd77859"],"subcategoriesName":["Big Tech"],"region":"IN","bundleMetaData":{"bundleId":"c35cfc57-1bba-4539-a24c-695ea99ac023","bundleTitle":"Mastering AI","cardData":null},"iabCategoryId":"597","fcSummary":"meta platforms and amd have signed a multi-year agreement for meta to deploy up to six gigawatts of amd gpus across its ai data centers. this deal, one of the largest ai compute partnerships ever, diversifies meta’s suppliers and strengthens its ai infrastructure, including large language models. amd may receive a 10% stake based on performance milestones. the move intensifies ai chip competition and highlights the growing demand for ai compute capacity.","summary":"Meta & AMD partner: a multi-year deal for 6 GW AI GPUs, with a warrant for ~10% AMD stake, boosts AI infrastructure.","ctaUrl":"https://trends.glance.com/newz/India_News/IN/en/et-now/f-993d06a2ab-d5b8e921-653a-5114-853b-54590be50a33","sourceUrl":"https://www.etnownews.com/news/meta-amd-ink-multi-year-deal-to-deploy-6-gw-ai-gpus-performance-warrant-linked-to-10-per-cent-stake-article-153693846","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/BzKmMcVcYuo0.webp","content":"

\n $\"meta,$ \n

Meta Platforms has signed a massive multi-year agreement with Advanced Micro Devices (AMD) to deploy up to six gigawatts of AMD GPUs across its artificial

\n\n\n

intelligence data centers, deepening its AI infrastructure push just days after committing to millions of chips from Nvidia. The agreement marks one of the largest disclosed AI compute partnerships to date and underscores Meta’s strategy to diversify suppliers as it scales next-generation AI models and data-center capacity.

\n\n

Six gigawatts of AI compute

\n
\nUnder the pact, AMD will supply multiple generations of its Instinct GPUs to power Meta’s expanding AI workloads, including large language models and advanced recommendation systems. The deployment is expected to roll out over several years, with the first wave of shipments beginning in the second half of 2026.\n
\nThe six-gigawatt figure reflects the enormous power and scale required to train and run cutting-edge AI systems. Industry analysts say such capacity places Meta among the most aggressive AI infrastructure investors globally.\n
\n
\n

Performance-based warrant structure

\n
\nIn a notable financial component of the deal, AMD has granted Meta a performance-based warrant that could allow the social media giant to acquire roughly a 10% stake in AMD if certain milestones tied to GPU deployments and performance metrics are achieved.\n
\nThe structure aligns long-term supply commitments with equity incentives — a relatively uncommon arrangement in semiconductor procurement agreements. It also signals confidence from both sides in the sustained demand for AI accelerators.\n
\n
\n

Market reaction

\n
\nThe announcement triggered sharp moves in semiconductor stocks. AMD shares surged following the news, as investors interpreted the agreement as a major competitive win in the AI chip race.\n
\nMeanwhile, broader AI-linked stocks saw mixed reactions as markets assessed the implications for Nvidia and other suppliers. Meta’s shares were volatile, with some investor concern focused on the scale of capital expenditure required to support AI data-center expansion.\n
\n
\n

AI chip competition intensifies

\n
\nThe deal highlights intensifying competition in the AI semiconductor space. Nvidia has dominated the AI accelerator market, but AMD has been steadily gaining ground with its Instinct GPU lineup.\n
\nBy partnering deeply with both Nvidia and AMD, Meta appears to be pursuing a multi-vendor strategy aimed at supply security, pricing leverage, and technological flexibility.\n
\nIndustry observers note that hyperscalers are increasingly locking in long-term chip supply agreements as demand for AI compute outpaces global manufacturing capacity.\n
\n
\n

Strategic implications

\n
\nFor Meta, the agreement reinforces its ambition to lead in generative AI and advanced machine learning infrastructure. For AMD, it represents a significant validation of its AI hardware roadmap and a potential long-term revenue engine.\n
\nThe scale of the pact signals that the global AI build-out is accelerating rather than slowing, with data centers becoming the new battleground for semiconductor dominance.\n
\nAs AI workloads grow more complex and compute-intensive, partnerships of this magnitude may become the norm reshaping both the semiconductor industry and the future of artificial intelligence infrastructure.\n

","readDurationInMinutes":"5","author":{"name":"ET Now","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/7aec3c7f-0d5c-4772-be2b-8a2314586551.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"G-FHL4HKFC2Z","type":"GA"},{"measurementId":"26200502","type":"COMSCORE","partnerName":"glance"}],"pointerSummary":["Meta signed a deal for up to 6 gigawatts of AMD GPUs.","AMD will supply Instinct GPUs starting 2H 2026, powering AI workloads.","Meta may acquire ~10% of AMD stock if performance goals are met."],"tags":["MetaPlatforms","AMD","AIGPUs","DataCenters","AIInfrastructure","MultiYearDeal","Gigawatts","PerformanceWarrant","EquityStake","SemiconductorIndustry","AIChips","Nvidia","LargeLanguageModels","RecommendationSystems","InstinctGPUs","Hyperscalers","GenerativeAI","MachineLearning","TechPartnerships","MarketReaction"],"redirectionEnabled":false,"consent":true}

Meta, AMD ink multi-year deal to deploy 6 GW AI GPUs; performance warrant linked to 10% stake

SUMMARY