Meta Signs AMD Deal for Six Gigawatts of AI Compute Potentially Worth $100 Billion
AMD will supply Meta six gigawatts of Instinct AI compute in a multi-year contract potentially worth over $100 billion, including MI450 GPUs, EPYC CPUs and performance-based warrants for up to 160 million shares, with shipments beginning in H2 2026. This deal cements AMD as competitor to Nvidia in high-margin AI data-center chips.
1. Multi-Year AI Compute Deal
AMD has agreed to supply Meta Platforms with six gigawatts of its Instinct AI compute power under a multi-year contract with shipments scheduled to start in the second half of 2026. The agreement positions AMD to deliver large volumes of custom Instinct MI450 GPUs alongside its EPYC CPUs and Helios rack-scale architecture to Meta’s data centers.
2. Warrant and Share Component
As part of the deal, AMD issued Meta a performance-based warrant for up to 160 million common shares exercisable at $0.01 each, which could translate into a roughly 10% equity stake if all milestones are achieved. Each gigawatt of AI compute in the contract is valued at tens of billions in potential revenue for AMD.
3. Expanding AI Ecosystem Participation
Beyond the Meta agreement, Avalon GloboCare’s AQAI unit was accepted into AMD’s AI Developer Program, granting access to AMD Developer Cloud credits, advanced tools and training resources. Concurrently, Meta has incorporated AMD’s compute capacity alongside Nvidia GPUs and Google’s TPUs as part of its layered, multi-vendor AI infrastructure strategy.