Meta will buy AMD AI processors for $100 billion

Meta and AMD have announced a large-scale partnership with a total value of about $100 billion. This was reported by The Wall Street Journal, citing sources familiar with the details of the deal.

As part of the agreements, Mark Zuckerberg’s company plans to purchase AMD MI450 artificial intelligence accelerators for its data centers for five years. This is an infrastructure with a total capacity of up to 6 gigawatts. According to market participants, each gigawatt of computing power can bring the chip manufacturer about $10 billion in revenue.

The deployment of the first facilities is expected by the end of this year. Meta is increasing the infrastructure for AI tasks – from training models to using them in its services.

Option for 10% of shares and terms of the deal

In addition to the supply of chips, the agreement provides for an option for Meta to purchase up to 160 million AMD shares – approximately 10% of the company – at a nominal price of $0.01 per share. The right will be exercised upon reaching certain financial indicators.

The final amount of payments will depend on the dynamics of AMD quotes. Meta will be able to receive the final tranche only if the share price reaches $600. At the time of publication, AMD shares were trading at $196.60.

Analogy with the OpenAI agreement

The agreement largely repeats the agreement that AMD concluded with OpenAI in October 2025. Then the ChatGPT developer also got the opportunity to buy up to 10% of the chip manufacturer’s shares.

As the WSJ notes, critics call such agreements “circular financing”: one company invests in a partner, and the latter in turn purchases its products or services.

AMD CEO Lisa Su said at a briefing that the deal is aimed at strengthening its position in competition with NVIDIA. The company seeks to secure large customers and in return increase their spending on infrastructure for artificial intelligence systems.