Meta and AMD strike multi-year AI chip deal for up to 6 gigawatts

Meta and AMD have announced a huge AI chip partnership, but the interesting part is how much of the system they are tying together. Meta will deploy up to 6 gigawatts of AMD Instinct GPUs under a multi year agreement. The first 1 gigawatt deployment is expected to start shipping in the second half of 2026. It will be built around a custom MI450 based Instinct GPU, and AMD’s Helios rack scale architecture.

This looks more like a buildout plan as AMD keeps stressing roadmap alignment across silicon, systems, and software for Meta’s workloads. And Meta keeps stressing long term compute diversification. Put together, both companies are signaling the same thing. Meta wants secure supply across multiple vendors while it pushes its AI plans forward, and AMD wants a durable place in that buildout at hyperscale. 

The deal gets more interesting in AMD’s 8-K filing. AMD gave Meta a stock warrant that could let Meta buy up to 160 million AMD shares for $0.01 each. Meta gets the first part of that warrant only after AMD ships the first 1 gigawatt of chips. It gets the full warrant only if its AMD chip purchases grow to 6 gigawatts. This depends on AMD’s stock hitting certain price targets (up to $600) and on Meta meeting some technical and business milestones before it can use that part of the warrant.

That structure helps explain why headlines split so fast on valuation. Reuters framed the agreement at up to about $60 billion over five years, while AP described it as potentially worth more than $100 billion. AMD did not give a total dollar figure in the announcement, so those numbers come from estimates by analysing the deal.

The bigger signal is in the timing. Meta had already announced a multiyear Nvidia deal for millions of chips just days earlier, so this is not passive diversification. It is moving aggressively to lock in capacity from more than one supplier. AMD, for its part, is showing it can sell a full platform story, not only a GPU line.