AMD Strikes Mega AI-Processor Deal with Meta Worth Up to $60 Billion

Meta to buy up to $60B in AMD AI hardware over 5 years, gaining warrants for a potential 10% stake. Deal highlights massive tech spending on AI infrastructure.

In a landmark move for the semiconductor space, AMD has secured one of the largest hardware contracts in tech history. Meta Platforms will purchase AI-processing hardware from AMD over the next five years, with a potential total value of up to $60 billion.

The supply will focus on high-performance AI chips, including Instinct GPUs and EPYC server CPUs built on the MI450 architecture. The scale is immense: the entire installed hardware footprint is expected to draw about 6 gigawatts of power, comparable to the output of four to six atomic reactors.

Beyond the straightforward supply agreement, Meta will receive performance-based warrants granting the right to acquire as many as 160 million AMD shares. This could translate into a stake of up to 10% in AMD. The warrants have a strike price of one cent and will vest in stages, unlocking as the stock price hits successive targets up to $600 per share.

The market reaction was swift. AMD’s stock climbed 8.8% on the session to $213.84, after an intraday surge of nearly 15%—the strongest move in about six months.

Tech Giants’ Cash Burn for Compute Power

The deal highlights the insatiable demand for compute capacity in the AI era. Meta’s chief executive, Mark Zuckerberg, signaled in late January that the company would funnel hundreds of billions of dollars into AI infrastructure. Across 2026, the major U.S. tech players—Meta, Alphabet, Amazon, and Microsoft—are projected to collectively channel roughly $630 billion into data centers and AI chips.

For AMD, this deal comes on the heels of a similar engagement with OpenAI in October 2025, marking the second major order in a short span. Meta is diversifying its supplier base: concurrently, it has secured hardware worth an estimated $50 billion from Nvidia. By way of context, AMD posted revenue of $34.64 billion in 2025, while Nvidia reported $130.50 billion.

Solid Foundations Amid Strong 2025 Results

The agreement follows a year of robust performance for AMD. In 2025, net income grew by 164% to $4.3 billion. Revenue in the fourth quarter reached a record $10.3 billion. The data-center segment proved particularly resilient, contributing $5.4 billion in Q4, up 39% year over year.

With the Meta deal, AMD further entrenches its position in the AI-chip landscape. The initial hardware shipments are slated to begin in the second half of 2026, and the market will watch closely to see whether AMD can narrow the gap to Nvidia’s lead as the collaboration with Meta unfolds.