Meta strikes up to $100B AMD chip deal as it chases ‘personal superintelligence’

Meta has announced a groundbreaking plan to potentially acquire up to $100 billion worth of AMD chips, a move that is expected to generate approximately six gigawatts of data center power demand. This significant multiyear agreement includes a performance-based warrant from AMD, granting Meta the option to purchase up to 160 million shares of AMD common stock at just $0.01 each, contingent on reaching specific milestones. The complete stock award hinges on AMD’s share price, needing to reach $600 for Meta to unlock the final tranche, as reported by The Wall Street Journal. As of Monday, AMD shares closed at $196.60. Under this partnership, Meta will be integrating AMD’s MI540 series GPUs and the latest generation of CPUs into its infrastructure. CPUs are becoming increasingly vital for AI inference due to their efficiency and scalability, allowing companies to diversify beyond Nvidia's offerings. "The CPU market is absolutely on fire," noted AMD CEO Lisa Su during an investor briefing. She emphasized the rising demand driven by AI infrastructure deployments and the scaling of agentic AI, stating that AMD is well-positioned to meet this demand. AMD is gradually increasing its presence as AI companies seek alternatives to Nvidia, which has maintained a dominant position in the AI chip market while charging a premium. This deal follows a similar arrangement between AMD and OpenAI last October, where equity was exchanged for chip purchases. Meta CEO Mark Zuckerberg described the collaboration with AMD as a crucial step in diversifying its computing capabilities and progressing toward what he terms "personal superintelligence." This concept involves creating AI systems that can profoundly understand and enhance individuals' daily lives. Looking ahead, Meta has committed to investing at least $600 billion into U.S. data centers and AI infrastructure over the coming years, with a projected capital expenditure of $135 billion earmarked for 2026. Recently, Meta also revealed plans for a $10 billion gas-powered data center campus in Indiana, which will support 1 gigawatt of computing capacity. This partnership with AMD comes shortly after Meta expanded its data center capabilities with millions of Nvidia’s latest CPUs and GPUs, while also developing its own in-house chips, despite facing some delays.