Meta plans up to $100B AMD chip deal to diversify AI infrastructure

Meta plans to purchase up to $100 billion worth of AMD chips, the companies announced on Tuesday. The planned chip purchase is enough to drive roughly six gigawatts of data center power demand.

As part of the agreement, AMD has issued Meta a performance-based warrant—a financial instrument giving the right to buy stock based on meeting specific milestones. The warrant allows Meta to acquire up to 160 million shares of AMD common stock, representing about 10% of the company. The terms of the warrant include:

• A purchase price of $0.01 per share.
• Vesting structured alongside certain milestones.
• A condition that AMD’s share price must hit $600 for Meta to receive its final tranche, according to The Wall Street Journal.

For context, AMD’s stock closed at $196.60 on Monday.

Under the agreement, Meta will purchase AMD chips, including CPUs. Meta CEO Mark Zuckerberg described the partnership as an important step as the company works toward personal superintelligence, which he defines as AI systems designed to deeply understand and empower individuals in their everyday lives. AMD CEO Lisa Su noted during an investor briefing on Tuesday that “The CPU market is absolutely on fire” due to growing demand. Su stated that there is significant demand that has continued to grow as a result of AI infrastructure deployments as inferencing and agentic AI scale, adding that AMD’s portfolio is in an extremely good position. AMD has been slowly gaining ground as technology firms seek to reduce their reliance on Nvidia, which is a competitor and existing chip supplier.

The partnership aligns with Meta’s broader pledge to invest at least $600 billion in U.S. data centers and AI infrastructure over the next several years. This includes a projected capital expenditure spend of $135 billion in 2026. As part of this infrastructure buildout, Meta recently unveiled plans for a $10 billion gas-powered data center campus in Indiana designed for 1 gigawatt of compute capacity. While Meta is working on its own in-house chips, the company has reportedly hit delays, making external partnerships critical. The deal follows a similar agreement last October where AMD and OpenAI partnered.

Why it matters

Meta’s pivot to AMD chips is a calculated move to reduce reliance on Nvidia’s dominant AI hardware, signaling that the race for “personal superintelligence” requires massive, diversified compute capacity that goes beyond current market leaders.