Advanced Micro Devices announced a multi‑year agreement with Meta Platforms to supply up to 6 gigawatts of AMD Instinct GPUs and AI‑optimized EPYC CPUs, along with the Helios rack‑scale platform. The contract, valued at $60‑$100 billion over five years, includes a performance‑based warrant that could grant Meta up to 160 million AMD shares—roughly 10 % of the company—vesting as shipment milestones are met.
The deal will begin with the deployment of MI450‑series GPUs in the second half of 2026, with subsequent shipments covering the remaining gigawatt capacity over the life of the agreement. The warrant’s exercise price is $0.01 per share and is tied to specific stock‑price targets (up to $600) and technical/commercial milestones, providing Meta with an equity sweetener that aligns its interests with AMD’s long‑term success.
For AMD, the contract represents the largest single customer win in its data‑center AI franchise and delivers a predictable, multi‑year revenue stream that strengthens its competitive position against Nvidia. The inclusion of EPYC “Venice” and “Verano” CPUs and the Helios platform signals a comprehensive hardware partnership that could accelerate Meta’s AI buildout and validate AMD’s AI roadmap.
AMD’s Q4 2025 results—record revenue of $10.3 billion and non‑GAAP EPS of $1.53—show strong momentum in the data‑center segment, which grew 39 % YoY to $5.4 billion. The company’s guidance for 2026 projects data‑center revenue of $22.9 billion, reflecting confidence that deals like the Meta contract will drive continued growth and margin expansion.
Meta’s Q4 2025 earnings—revenue of $59.89 billion, up 24 % YoY, and EPS of $8.88—highlight the company’s substantial capital expenditures of $72.22 billion for 2025, underscoring its aggressive investment in AI infrastructure. The partnership aligns with Meta’s “personal superintelligence” initiative, which requires massive, scalable compute power.
Market reaction to the announcement was positive, with analysts noting the deal’s scale, the long‑term revenue certainty it provides AMD, and the strategic diversification it offers Meta away from Nvidia. The agreement also signals a maturing AI hardware market where hyperscalers are securing multi‑year capacity from multiple leading suppliers.
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