Meta Platforms announced a multi‑year agreement to purchase up to 6 gigawatts of Advanced Micro Devices’ (AMD) Instinct GPUs and EPYC CPUs, with a total value of up to $100 billion over five years. The contract includes a performance‑based warrant that could grant Meta up to 10 % of AMD’s outstanding shares, aligning the two companies’ interests over the life of the deal.
The agreement specifies the deployment of AMD’s MI450 GPU and next‑generation EPYC “Venice” CPUs, with shipments scheduled to begin in the second half of 2026. The MI450 is designed for high‑throughput AI inference, while the Venice CPUs provide scalable compute for Meta’s data‑center workloads.
Strategically, the deal allows Meta to diversify its AI compute supply and reduce reliance on Nvidia, while giving AMD a credible alternative in the hyperscale market. The equity warrant structure signals a long‑term partnership and provides AMD with predictable, multi‑year revenue that is expected to be accretive to its non‑GAAP earnings per share.
Financial context underscores the scale of the investment: Meta’s Q4 2025 revenue was $59.9 billion, with expenses of $35.1 billion, while AMD reported $34.6 billion in revenue for 2025 and a 33 % margin in its data‑center segment. The new agreement is expected to strengthen AMD’s position in the AI chip market and validate its technology against Nvidia’s dominance.
Investors viewed the deal as a validation of AMD’s AI chip strategy, while Nvidia’s shares were pressured by the perceived loss of potential business. Broadcom also felt the impact of Meta’s shift away from its in‑house accelerator program.
"We are proud to expand our strategic partnership with Meta as they push the boundaries of AI at unprecedented scale," said Dr. Lisa Su, AMD Chair and CEO. "We're excited to form a long‑term partnership with AMD to deploy efficient inference compute and deliver personal superintelligence," added Mark Zuckerberg, Meta CEO. "We expect this partnership to drive substantial multi‑year revenue growth and be accretive to our non‑GAAP earnings per share," stated AMD CFO Jean Hu.
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