Meta is doubling down on AI dominance, striking a blockbuster multiyear deal with AMD just days after pledging millions of Nvidia GPUs.
The agreement promises up to 6 gigawatts of AMD’s graphics processing units for Meta’s exploding AI data centers, blending Instinct MI450 GPUs in Helios rack-scale servers with AI-optimized CPUs. Early shipments kick off later this year.
Deal Sparks Stock Surge and Share Grab
AMD shares rocketed 7% on the announcement, while Meta dipped slightly and Nvidia held flat. A standout feature: Meta snags a performance-based warrant for 160 million AMD shares roughly 10% of the company.
Vesting starts with the first 1GW of GPU shipments, scaling to 6GW, tied to AMD stock thresholds and Meta’s tech milestones.
Su told CNBC that the warrant structure is a “win-win” for shareholders, underpinning a “very ambitious” plan and financial model. She views the agreement as one of the “most transformational deals” for the chipmaker as it expands its AI capabilities. She said:
“We’re early in the cycle of seeing what the ultimate payoff can be.” “And that’s where we have to invest ahead of the curve and really point in the direction that is going to have the largest benefit.”
Meta’s Massive AI Spend Fuels the Fire
Meta Platforms reported $59.89 billion in revenue for the fourth quarter of 2025 and $200.97 billion for the full year in late January 2026.
The company also provided guidance for first-quarter 2026 revenue of $53.5 billion to $56.5 billion and a significant planned increase in capital expenditures to $115 billion to $135 billion for artificial intelligence infrastructure.
AMD’s Q4 sales rose 34% to $10.27 billion, while Nvidia expects 68% growth to $66 billion. Hence, those who control the chips behind the curtain will win AI dominance with this bold multiyear pact.
