Meta's Landmark AMD Partnership Signals Massive AI Infrastructure Push

Meta partners with AMD in a multi-year deal for up to 6GW of AI computing power, including warrants for a 10% stake, as part of its $600B infrastructure plan.

In a move that underscores the sheer scale of its artificial intelligence ambitions, Meta has entered into a multi-year agreement with Advanced Micro Devices (AMD) valued at over $100 billion. The deal centers on securing up to six gigawatts of computing capacity and includes a potential equity stake for the social media giant, highlighting a strategic shift in how it is building its technological foundation.

Unprecedented Scale and Strategic Warrants

The partnership involves AMD supplying custom-developed sixth-generation Epyc processors and Instinct MI450 accelerators. Deployment is scheduled to begin in the second half of 2026, with an initial phase delivering one gigawatt of capacity based on a co-developed server architecture named Helios.

A particularly notable component of the agreement grants Meta performance-based warrants for up to 160 million AMD shares. These come with a nominal exercise price of $0.01 per share. However, the final vesting of these options is contingent upon AMD meeting specific delivery milestones and its share price reaching the $600 threshold. If fully realized, this would give Meta an approximate 10% ownership position in the chipmaker.

Reducing Vendor Reliance and Following a Blueprint

This agreement with AMD follows a recent, separate procurement deal with Nvidia, reflecting Meta's clear strategy to diversify its supplier base and avoid over-reliance on any single company. The structure of the contract mirrors a similar arrangement reportedly made with OpenAI in October 2025, suggesting a template for large-scale, incentive-linked technology partnerships.

AMD's CEO, Dr. Lisa Su, quantified the revenue potential from the deal, indicating it represents a multi-billion dollar opportunity for each gigawatt of capacity provided. The market responded favorably to the announcement, with AMD's stock climbing 6.6% to close at $209.50.

Part of a Broader $600 Billion Vision

The AMD partnership is not an isolated event but a key piece of Meta's unprecedented capital expenditure plan. The company has outlined its intention to invest more than $600 billion over the coming decade into U.S. data centers and AI infrastructure. For the 2026 fiscal year alone, projected investments are between $115 billion and $135 billion.

Following the news, Bernstein Research analyst Stacy Rasgon maintained a "Market Perform" rating on AMD shares with a price target of $235, signaling a view that the stock is fairly valued at current levels. Meta's own shares ended the trading session at $639.30.