Topic / Subject

Meta and AMD reportedly agreed to a massive, multi-year AI chip supply pact — with a “chips-for-stock” warrant that could make Meta a major AMD shareholder if delivery milestones hit. 

TL;DR

Meta is trying to lock down long-term compute (reportedly up to 6GW) and diversify beyond Nvidia — and AMD is getting a huge validation stamp for its next-gen AI hardware. 

Key Details

Reuters reports the deal is worth up to $60B over five years; WSJ frames it as worth more than $100B (TechCrunch says “up to $100B”).  Reporting ties the agreement to up to six gigawatts of compute supply over the term.  The structure reportedly includes a performance-based warrant that could let Meta buy up to ~160M AMD shares (around ~10% of AMD) if milestones are met.  Reuters says the first tranche includes a 1GW deployment of AMD’s MI450 hardware in the second half of 2026, plus work on a custom CPU for Meta workloads. 

Breakdown

This is what the AI arms race looks like in 2026: not “we bought some GPUs,” but “we secured power-plant levels of compute for years.” If the 6GW figure holds, it’s a pipeline-locking move meant to keep Meta’s buildout from getting bottlenecked. 

The warrant part is the spicy twist. It’s effectively AMD saying, “If we deliver at scale, you get upside,” and Meta saying, “If you deliver at scale, we’ll commit hard.” That kind of incentive wiring is becoming a pattern in mega AI infrastructure deals. 

For AMD, it’s huge because it’s not just revenue — it’s credibility. Getting Meta to bet this big signals AMD’s stack is being treated as a real alternative in a world where Nvidia has been the default answer. 

What to Watch Next

What’s actually in the supply mix (how much MI450 vs other parts) and what “custom CPU” means in practice.  Whether Meta discloses more about the warrant triggers and delivery milestones.  Knock-on effects: does this squeeze other buyers, or does it expand AMD’s production ambitions even faster?  

Sources

Reuters — AMD clinches second mega chip supply deal, this time with Meta

TechCrunch — Meta strikes up to $100B AMD chip deal as it chases ‘personal superintelligence’

The Wall Street Journal — Meta and AMD Agree to AI Chips Deal Worth More Than $100 Billion

Comment

If you’re Meta, do you prefer “multi-vendor freedom” or “lock the pipeline for five years” — which strategy wins this AI era?