Just one week after committing to massive Nvidia GPU purchases, Meta has signed a major multi-year agreement with AMD, breaking Nvidia's perceived AI chip monopoly. AMD shares jumped sharply following the announcement.

Meta will deploy 6 gigawatts of AMD MI450 GPUs, built on a 2nm process, combined with AI-optimized CPUs across its global AI data centers. Shipments are scheduled to begin in the second half of 2026.

The deal includes a significant equity component: AMD has granted Meta warrants to purchase up to 160 million shares (approximately 10% of total shares) at $0.01 per share, subject to delivery and stock price milestones, including AMD shares reaching $600. Current trading price is around $196.60.

AMD CEO Lisa Su stated the company is providing Meta with high-performance, energy-efficient infrastructure to accelerate one of the largest AI deployments in the industry.

Analysts estimate the agreement could be worth tens of billions of dollars over at least four years, given the scale of the 6-gigawatt GPU deployment. The deal aligns with Meta's aggressive AI push, having committed $135 billion in 2026 capital expenditures for 30 new AI data centers.

ICgoodFind : This landmark deal represents AMD's most significant AI breakthrough to date. Securing a customer of Meta's scale with long-term volume and strategic equity involvement validates AMD's MI series trajectory and positions it to meaningfully challenge Nvidia's AI dominance.