{"id":"f-445134d771-6c1cf83e-dd1b-595a-86c4-29fd537cc36f","title":"Meta Platforms to Acquire AI Chips from AMD in Potential $100 Billion Deal","description":"Meta Platforms plans to acquire AI chips from AMD, potentially valued at over $100 billion, enhancing its data center capabilities amid a competitive tech landscape.","timestamp":1772257920,"category":"technology","headline":"Meta Platforms to Acquire AI Chips from AMD in Potential $100 Billion Deal","modifiedHeadline":"Meta to Buy $100 Billion AI Chips from 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 plans to buy over $100 billion worth of ai chips from amd to boost its data centers. amd's stock jumped significantly following the announcement, which includes a performance-based warrant for shares. this deal follows a partnership with nvidia, as amd aims to compete in the booming ai technology market.","summary":"Meta to buy AI chips from AMD in a potential $100B deal, boosting data centers & challenging Nvidia's dominance. Shares surge!","ctaUrl":"https://trends.glance.com/newz/news/IN/en/timesnow/f-445134d771-6c1cf83e-dd1b-595a-86c4-29fd537cc36f","sourceUrl":"https://www.timesnownews.com/agency-news/meta-platforms-to-acquire-ai-chips-from-amd-in-potential-100-billion-deal-article-153685328","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/LwrWn27qsB_0.webp","content":"

Meta Platforms, the parent company of Facebook, has announced its intention to purchase artificial intelligence chips from Advanced Micro Devices (AMD)

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in a deal that may be valued at over $100 billion. The agreement involves the acquisition of AMD's MI450 chips to enhance the capabilities of Meta's data centers, with shipments expected to commence in the latter half of this year as part of a 6-gigawatt initiative.

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Stock Market Reaction

Following the announcement, AMD's shares surged by more than 9% before the market opened on Tuesday.\n
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Performance-Based Warrant

As part of the deal, AMD has granted Meta a performance-based warrant for up to 160 million shares of its common stock, priced at $0.01 each. This warrant will vest contingent on the achievement of specified milestones.\n
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\nThe initial tranche will vest with the first gigawatt of shipments, with subsequent tranches tied to an increase in Meta’s purchases scaling up to 6 gigawatts.\n
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Recent Partnerships

This development follows Meta's recent announcement of a long-term partnership with Nvidia, where it will utilize millions of chips and other technologies from Nvidia for its AI data centers.\n
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AMD's Competitive Landscape

AMD aims to compete with Nvidia amid a surge in demand for AI technologies, which many analysts regard as a significant shift in the tech industry, comparable to the introduction of the iPhone by Apple co-founder Steve Jobs.\n
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\nNvidia has established an early advantage by adapting its graphics processing units (GPUs) for AI applications, which has led to increased demand from tech companies seeking to develop and run AI systems.\n
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Concerns Over AI Investment

Despite the strong demand for AI chips, concerns persist regarding the substantial investments made by companies like Meta and the feasibility of recouping these costs through enhanced profitability and productivity in the future.\n
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Meta Platforms to Acquire AI Chips from AMD in Potential $100 Billion Deal

SUMMARY