Feb 24, 2026 - Business

Meta and AMD set huge AI chips pact

Jeffrey Cane

Illustration of an infinite, recursive tunnel of semiconductor chips. — Illustration: Shoshana Gordon/Axios

Advanced Micro Devices has agreed to sell AI chips to Meta that will enable the Facebook parent to deploy six gigawatts of computing power. The deal will also allow Meta to acquire as much as 10% of AMD.

Why it matters: It comes just a week after Meta announced a deal to buy chips from AMD rival Nvidia and shows that the arms race in AI continues to escalate.

It's also another example of a circular deal in which a customer or supplier takes a stake in the other.

Zoom out: The agreement mirrors one AMD struck with OpenAI last October: The AI startup agreed to buy billions of dollars worth of chips as well as a 10% stake.

What they're saying: "We are proud to expand our strategic partnership with Meta as they push the boundaries of AI at unprecedented scale," AMD CEO Dr. Lisa Su said in a statement.

Zoom in: The first chip shipments will begin the second half of this year.

A gigawatt represents enough power to electrify a small city.
AMD stands to gain tens of billions of dollars in revenue for each gigawatt of computing power, the Wall Street Journal notes.

Follow the money: As part of the deal, Meta has received warrants that would allow it buy up to 160 million shares of AMD if certain performance targets are hit.

Shares of AMD were up 11% in pre-market trading.

This is a developing story.

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Meta and AMD set huge AI chips pact

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