Meta Signs Five-Year AMD AI Chip Supply Deal, Grants 1% Equity Stake
Meta has entered a five-year agreement with AMD to supply custom AI accelerators for its data centers and has granted AMD a 1% equity stake. The pact secures AMD roughly $3 billion in GPU sales through 2028 and accelerates Meta’s AI infrastructure rollout.
1. Partnership Details
Meta and AMD have agreed on a five-year collaboration under which AMD will design and deliver custom AI accelerators optimized for Meta’s data-center workloads. These chips will power next-generation generative AI models and replace existing GPU fleets to improve performance per watt.
2. Financial Terms
As part of the deal, Meta has granted AMD a 1% equity stake, aligning incentives and marking a rare strategic share issuance. AMD is projected to realize approximately $3 billion in incremental GPU sales from 2026 through 2028 under this commitment.
3. Strategic Impact
Securing a dedicated chip supplier strengthens Meta’s control over its AI stack and mitigates supply-chain risks. The partnership also bolsters AMD’s positioning against rival GPU vendors and underscores growing cloud demand for custom AI hardware.