Meta and Advanced Micro Devices (AMD) have signed a multi-year agreement under which Meta will purchase up to 6 gigawatts of AI chips from AMD over the next five years. The deal, valued at roughly $60 billion, marks a major expansion in Meta’s AI infrastructure commitments.

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What’s Inside: The Deal Details

Under the agreement, AMD will supply a range of AI computing hardware, including its Instinct graphics processing units (GPUs) and central processors, to support Meta’s expanding data centre needs. Initial shipments for the first 1 gigawatt of capacity are expected to start in the second half of 2026.

The contract also includes a performance-based warrant that could allow Meta to acquire up to 10% of AMD’s shares if specified purchase and stock price milestones are met.

AMD Chief Executive Lisa Su said the partnership aligns both companies’ roadmaps for high-performance, energy-efficient compute infrastructure, designed to meet Meta’s large-scale AI workloads.

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Market Positioning and Importance for the Industry

The agreement comes at a time when most of the tech firms are competing to secure long-term access to advanced AI computing hardware. AMD’s agreement with Meta follows a similar deal with AI developer OpenAI, helping to broaden AMD’s customer base beyond traditional GPU leader Nvidia.

The deal strengthens AMD’s position in the AI chip market and highlights Meta’s efforts to diversify its supply chain. Meta is also reportedly expanding chip purchases from other vendors and continuing in-house AI silicon development.