Meta seals up to $100 billion AI‑chip supply pact with AMD, option for 10% stake.

Meta’s first‑stage rollout of the AMD‑supplied hardware is slated for the second half of 2026, when the company will begin installing custom MI450‑class GPUs and next‑generation “Venice” and “Verano” CPUs across its data‑center fleet, according to a Forbes report. The deal calls for a 6‑gigawatt (GW) GPU commitment—a scale that rivals the combined capacity of several hyperscale operators—and is priced at “hundreds of billions” of dollars, with the upper bound cited as $100 billion. Reuters confirms that the agreement gives Meta an option to acquire a 10 percent equity stake in AMD, effectively turning the chipmaker into a strategic partner rather than just a supplier.

The partnership marks AMD’s second “mega” AI chip contract in less than a year, following a similar arrangement with Nvidia that secured Meta’s Vera Rubin AI racks. Wccftech notes that the new AMD deal could represent up to 20 percent of the company’s valuation if the full $100 billion potential is realized, underscoring how critical Meta’s demand is to AMD’s growth trajectory. The custom MI450 GPUs will be tuned for Meta’s mixed training and inference workloads, a detail highlighted by both Forbes and the Anadolu Ajansı, which described the agreement as a “long‑term AI infrastructure deal” aimed at diversifying Meta’s hardware supply chain.

From Meta’s perspective, the pact is a hedge against reliance on Nvidia, whose dominance in the AI accelerator market has left competitors scrambling for footholds. SQ Magazine reports that the 6 GW GPU commitment is “massive” and signals Meta’s intent to build a private AI compute fabric capable of supporting its expanding suite of generative‑AI products, from Llama‑2‑based services to internal research platforms. By securing a sizable, dedicated supply of AMD silicon, Meta can better control costs and timelines for its next wave of AI models, a strategic move that aligns with its broader push to monetize AI across its family of apps.

Financial analysts see the equity‑option clause as a win‑win for both parties. If Meta exercises the 10 percent stake, AMD would gain a high‑profile shareholder with deep pockets and a clear incentive to prioritize Meta’s roadmap. Conversely, Meta would lock in preferential pricing and early access to AMD’s roadmap, potentially narrowing the performance gap with Nvidia’s Hopper and H100 GPUs. Reuters points out that the deal is “valued at up to $100 billion,” making it one of the largest chip supply contracts ever signed and a clear signal that the AI hardware market is moving beyond a single‑vendor paradigm.

The broader industry impact is already evident. CNET notes that the deal “is all about the AI chips,” emphasizing how the competition for capacity is reshaping supplier relationships. With AMD now counting Meta among its flagship customers, the company is positioned to capture a larger share of the AI‑accelerator market, which analysts at Refinitiv (cited by Reuters) expect to grow at double‑digit rates through 2028. For Meta, the partnership not only diversifies its supply base but also embeds the social‑media giant deeper into the silicon ecosystem—a move that could pay dividends as AI becomes the primary engine of user engagement and advertising revenue.