Meta secured a six-gigawatt, four-year GPU agreement with AMD including a 160 million-share common stock warrant with the first one-gigawatt tranche ramping in the second half of 2026 into 2027. Custom MI450 chips promise lower total cost of ownership versus merchant GPU products for Meta.
Meta has agreed to a six-gigawatt, four-year GPU contract with AMD, featuring a 160 million-share common stock warrant. The first one-gigawatt tranche is scheduled to ramp in the second half of 2026 and continue into 2027.
The deal centers on AMD’s custom MI450 chips, which are expected to deliver a lower total cost of ownership compared with off-the-shelf merchant GPU products in Meta’s data centers. This cost advantage could reduce Meta’s hardware and operational expenses for AI workloads.
By diversifying its GPU supply away from a single vendor, Meta aims to expand capacity for AI computation while managing capital expenditures. The agreement supports Meta's broader efforts to optimize infrastructure costs and scale its AI initiatives.
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