AMD and Meta announced Tuesday that Meta will deploy up to 6 gigawatts of AMD Instinct GPUs across its AI infrastructure over multiple years. The deal sent AMD shares up 8.77% to close at $213.84, touching $216.71 intraday. Meta closed nearly flat at $636.64.
The partnership marks one of the largest semiconductor deals in history. Shipments supporting the first 1-gigawatt deployment are scheduled to begin in the second half of 2026. The chips will use custom AMD Instinct GPUs based on the MI450 architecture, paired with 6th Gen AMD EPYC CPUs codenamed "Venice," running ROCm software.
The hardware will be built on the AMD Helios rack-scale architecture, which AMD and Meta developed through the Open Compute Project.
“We are proud to expand our strategic partnership with Meta as they push the boundaries of AI at unprecedented scale,” said Dr. Lisa Su, chair and CEO of AMD. “This multi-year, multi-generation collaboration across Instinct GPUs, EPYC CPUs and rack-scale AI systems aligns our roadmaps to deliver high-performance, energy-efficient infrastructure optimized for Meta’s workloads.”
"What's unique about this deal is we started with the workload first. We didn't start with the chip," Su said during the conference call with investors Tuesday. The deployment is worth "significant double-digit billions of dollars per gigawatt," according to Jean Hu, AMD's EVP and CFO.
Damilare Odedina
AMD Hands Meta a Path to 10% Ownership
As part of the agreement, AMD issued Meta a performance-based warrant for up to 160 million shares of AMD common stock with an exercise price of $0.01 per share. The warrant structure ties vesting to two conditions: AMD meeting specific GPU shipment milestones and achieving certain stock price thresholds.
Meta unlocks the first batch of shares when AMD completes the initial 1-gigawatt shipment. More shares become available as Meta scales its purchases toward the 6-gigawatt mark. However, to unlock the final batch, AMD's stock price must hit $600, a massive climb from its $197.42 closing price on Monday.
If Meta exercises the full warrant, it would hold approximately 10% of AMD's outstanding shares. AMD used an identical warrant structure in an October 2025 agreement with OpenAI, which also involved a 6-gigawatt deployment.
"This deal is very accretive to AMD's earnings," Su said attesting to Jean Hu statements on delivering the company's long-term financial model, "But what we're setting out to create is a strategic partnership where we're going much, much deeper together.”
Meta already operates millions of AMD EPYC CPUs and what AMD described in its release as "significant deployments" of AMD Instinct MI300 and MI350 series GPUs. AMD identified Meta as its second-largest customer in the announcement.
Meta Confirmed Similar Deal with Nvidia One Week Ago
Meta announced a separate multi-year agreement with Nvidia on February 17 to deploy millions of Blackwell and Rubin GPUs, along with standalone Grace CPU servers. Meta disclosed both partnerships are part of what it calls a "portfolio-based approach" to AI infrastructure.
"We're excited to form a long-term partnership with AMD to deploy efficient inference compute and deliver personal superintelligence," said Mark Zuckerberg. "This is an important step for Meta as we diversify our compute. I expect AMD to be an important partner for many years to come."
Meta stated in its January earnings call that it plans to spend between $120 billion and $135 billion in capital expenditures in 2026.
The 6 gigawatts of power consumption required for the AMD deployment equals the annual electricity usage of approximately 5 million U.S. households, based on average consumption data from the U.S. Energy Information Administration.
Nvidia holds approximately 92% of the AI accelerator market, according to data from Jon Peddie Research, and as of Wednesday carries a market capitalization of $4.69 trillion compared to AMD's $348.65 billion.
Louis Eriakha
