Meta Commits $3.5B to AMD for MI300 AI Chips, Acquires $1.5B Equity Stake
Meta Platforms agreed to purchase $3.5 billion of AMD’s MI300 GPU AI accelerators over five years and will invest $1.5 billion to acquire 1.2% of AMD’s outstanding shares. The multi-year deal is projected to add $700 million in revenue in fiscal 2026, ramping to $1.2 billion by 2028.
1. Deal Details
Meta Platforms has agreed to purchase $3.5 billion worth of AMD’s MI300 AI accelerator GPUs over a five-year period to power its data center infrastructure. As part of the agreement, Meta will acquire $1.5 billion in AMD common stock at a fixed price, representing roughly 1.2% of outstanding shares.
2. Financial Impact
The multi-year chip supply deal is expected to contribute an incremental $700 million in AMD revenue in fiscal 2026, ramping to over $1.2 billion by 2028. The equity investment provides AMD with additional balance sheet resources to accelerate R&D and manufacturing expansion for its advanced semiconductor nodes.
3. Market and Strategic Implications
Following the announcement, AMD shares rose 6% in early trading, reflecting investor confidence in the AI growth opportunity. Analysts highlight that the partnership underscores the complex interdependence in the AI ecosystem, positioning AMD as a key supplier to hyperscale cloud operators.