AMD Secures Landmark AI Deal with Meta, Valued Up to $60 Billion

Meta to power AI expansion with AMD's Instinct MI450 GPUs in a multi-year deal worth up to $60 billion, marking a major challenge to Nvidia's dominance.

In a major strategic coup, Advanced Micro Devices (AMD) has landed Meta Platforms as a key customer for its upcoming Instinct MI450 data center GPUs. This multi-year agreement, potentially worth up to $60 billion, represents a massive vote of confidence in AMD’s ability to compete in the high-stakes artificial intelligence hardware market and sent the company’s shares soaring by over 15%.

A Partnership of Staggering Scale

The newly announced partnership centers on Meta’s plan to significantly expand its AI infrastructure. The social media giant intends to power up to 6 gigawatts of computing capacity with AMD technology. This will involve deploying AMD’s next-generation Instinct MI450 GPUs alongside its sixth-generation EPYC server processors over a five-year period.

For AMD, securing a second tech titan—following a similar deal with OpenAI in October 2025—signals its emergence as a credible alternative to Nvidia’s dominance. Investor reaction was immediate and powerful: AMD’s stock price surged 15.64 percent to close at 192.64 euros.

Strategic Warrants Tie Long-Term Interests

Beyond the sheer volume, the agreement contains a sophisticated financial mechanism designed to align both companies’ futures. AMD has granted Meta warrants, which provide the right to purchase up to 160 million AMD shares. These warrants are not automatic; their exercise is contingent upon AMD meeting specific technical delivery milestones and its share price surpassing certain thresholds, with targets extending as high as $600 per share.

This structure effectively gives Meta a potential path to acquire nearly a 10 percent stake in the chipmaker. It mirrors the framework of AMD’s earlier pact with OpenAI. For Meta, the move represents an aggressive diversification of its AI supply chain, even as it continues to procure chips from Nvidia.

Execution is the Next Critical Hurdle

With two of the world’s largest technology firms now in its order book, AMD has firmly established itself as the second major force in the data center chip sector. The focus for market observers now shifts sharply to execution. Shipments of the crucial MI450 chips are scheduled to commence in the second half of 2026.

The company’s ability to scale production on time and deliver hardware that meets technical specifications will be the decisive factor in converting these monumental revenue promises into tangible profits. The coming quarters will be a critical test of AMD’s operational capabilities as it prepares to fulfill its most significant contracts to date.