Meta Locks 6-Gigawatt AI Chip Supply with AMD, Eyes Infrastructure Expansion
Meta agreed to a 6-gigawatt AI chip deal with AMD, expanding in-house AI capacity and securing supply through 2030. It still relies on advertising for 98% of 2025 revenue and faces pressure from Alphabet’s Google Cloud, which grew 36% year-over-year.
1. Meta Finalizes 6-Gigawatt AMD Chip Supply Agreement
Meta’s agreement with AMD locks in supply of AI accelerator chips sufficient to support 6 gigawatts of power draw in its data centers, representing one of the largest semiconductor capacity deals to date and securing hardware throughput for its next-generation AI models through 2030.
2. Heavy Advertising Dependence Exposes Revenue Risks
The company generated 98% of its 2025 revenue from digital advertising, leaving it exposed to market downturns and shifts in ad spending; its lack of diversification contrasts with competitors such as Alphabet, whose Google Cloud unit grew revenues by 36% year-over-year.
3. Investor Sees AI Ecosystem Complexity Challenges
Investors warn that the scale and integration required for the chip deal highlight the complexity of the AI ecosystem, with potential logistical, technical and cost challenges as Meta ramps up internal AI infrastructure.