The race for artificial intelligence supremacy has just reached a new level of intensity. Meta Platforms and AMD recently announced a massive AI chip partnership valued at over $100b, a deal that could eventually make Meta one of AMD’s largest shareholders. This collaboration aims to provide the massive computing power Mark Zuckerberg needs to achieve what he calls “personal superintelligence.”
Under the agreement, Meta will purchase enough of AMD’s latest hardware to power data centers with up to 6 gigawatts of capacity over the next five years. For reference, one gigawatt is enough to power about 750,000 homes. The deal helps Meta diversify its infrastructure, reducing its heavy reliance on the AI leader Nvidia.
AMD’s $100 billion coup: Meta’s AI chips partnership to challenge Nvidia
The financial structure is what makes this deal stand out. AMD is offering Meta warrants to buy up to 160 million shares—roughly 10% of the company—for just $0.01 each. However, there is a catch: Meta only receives these shares if certain technical and commercial milestones are met. Furthermore, the final portion of the stock award only unlocks if AMD’s share price hits $600. This is a significant jump from its current trading range near $200.
This strategy, which AMD also used in a recent deal with OpenAI. It essentially ties the success of the chipmaker to its biggest customers. Some critics call this “circular financing,” but investors seem hopeful as AMD’s stock price went up after the news.
Custom hardware for better AI
One of the best things about this Meta-AMD 100b partnership is the moving toward customization. Lisa Su, the CEO of AMD, said that the deal includes custom-designed chips that are specifically made to work with Meta’s workloads. The new MI450 series utilizes a “chiplet” architecture, allowing Meta to optimize the hardware for inference—the process where an AI model actually responds to a user’s question.
The social media giant continues to buy millions of chips from Nvidia and develops its own in-house processors. This deal with AMD, on the other hand, is a key third pillar for Meta. Meta is ensuring that its AI goals—from improving Instagram ads to developing advanced large language models—won’t be stopped by the ongoing global chip shortage.
The Idea of personal superintelligence
Zuckerberg’s focus on “personal superintelligence” aims for a future where AI deeply understands and assists people. To do this, we need a level of computing power that was unthinkable just a few years ago. In 2026 alone, Meta plans to spend more than $135 billion on AI infrastructure. The partnership with AMD serves as a foundational block for the next decade of AI advances.
The first gigawatt of compute from this partnership begins deployment later this year. If AMD can successfully deliver these custom solutions at scale, it may finally provide the first real challenge to Nvidia’s throne, while giving Meta the horsepower it needs.
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