Meta strikes up to $100bn AI chip deal with AMD, takes 10% stake

Meta Platforms has agreed a landmark deal worth up to $100 billion (£74 billion) to purchase artificial intelligence chips from Advanced Micro Devices (AMD), while also taking a 10 per cent equity stake in the US chipmaker.

The agreement marks one of the largest supply partnerships yet in the escalating global race to secure advanced AI computing power.

Meta, which owns Facebook, Instagram and WhatsApp, said the chips will power next-generation data centres focused on training and running large AI models.

Meta’s deployment of AMD’s latest AI accelerator chips as part of a 6-gigawatt infrastructure build-out showcases the industry’s rapid progress and the momentum behind large-scale AI development.

Shipments supporting the first gigawatt of deployment are scheduled to begin in the second half of 2026.

The 6-gigawatt AI compute infrastructure, comparable to the electricity consumption of small cities, underscores the energy-intensive nature and scale of modern AI training efforts.

It reflects hyperscalers’ shift toward vertically integrated AI ecosystems.

By securing a 10 per cent stake in AMD, Meta not only ensures long-term chip supply but also aligns strategically with industry leaders, reflecting a broader shift toward integrated AI ecosystems among hyperscalers.

The move mirrors a similar partnership last year between AMD and OpenAI, the developer of ChatGPT, which also took an equity position in the chipmaker as part of a supply agreement.

Such arrangements highlight a growing trend as AI developers are locking in chip supply through capital investment.

Semiconductor firms are seeking anchor customers to justify vast manufacturing expansion, and the AI hardware race is increasingly concentrated among a handful of players.

The deal underscores the enormous sums being committed across the sector as technology firms compete to dominate generative AI, large language models, and AI-driven consumer services.

With AI chips now the industry’s critical bottleneck, the surging demand highlights the urgency for stakeholders to address supply constraints and capitalize on growth opportunities.