Meta takes 10% stake in AMD in multibillion dollar deal

In a strategic move to counter the dependence on market leader Nvidia, Meta announced a multibillion-dollar deal with Advanced Micro Devices (AMD) on Tuesday, February 24, to secure artificial intelligence (AI) chips.

AMD, an American multinational semiconductor company, has signed a multiyear agreement with Meta in which six gigawatts’ worth of Instinct GPUs will be provided to Meta.

The primary purpose of the deal is to bolster the AI data centre infrastructure of Meta. The deal marks a major step for AMD in gaining a foothold in the AI chip market, an industry in which Nvidia holds over 90% share.

In a dramatic shift, Meta also vowed to acquire up to 160 million shares, representing roughly 10% of the company.

The deal has been announced weeks after Meta committed to spending a billion on a million Nvidia chips. This highlights the social media giant’s insatiable desire for computing power as it races to develop advanced AI.

In contrast to standard agreement with Nvidia, Meta’s deal with AMD involved customised chips with shipments of new M1450 processors expected to begin in the second half of 2026.