Meta Platforms Seals $100B AI Chip Deal with AMD to Power AI Push

San Francisco: Meta Platforms has signed a major deal to buy AI chips from Advanced Micro Devices, with the potential to acquire up to a 10% stake in the chipmaker.

Meta will purchase AMD’s MI450 chips for its AI data centres under a six-gigawatt agreement, with the first gigawatt shipping in the second half of this year. The deal could ultimately be worth over $100 billion.

AMD also granted Meta performance-based warrants for up to 160 million shares, vesting as chip shipments scale. The agreement positions AMD to compete with Nvidia, which dominates the AI chip market powering systems like ChatGPT.

Meta has been aggressively expanding its AI efforts, including investments in AI startups and data companies, as it seeks to boost capabilities across platforms like Instagram and keep pace with rivals such as Google and OpenAI.

The news sent AMD shares up more than 9% in early trading. 

By RSS/AP