Advanced Micro Devices Inc. (AMD) and Meta Platforms Inc. have broadened their existing technology collaboration with a definitive multi-year agreement under which Meta may deploy up to 6 gigawatts of AMD’s AI processors to support its next-generation artificial intelligence infrastructure. The expanded agreement signals both companies’ deepening engagement in the rapidly evolving AI compute market and reflects broader commercial and competitive dynamics shaping technology investment this year.
Under the terms disclosed in press announcements, the deal will see Meta install multiple generations of AMD’s Instinct™ AI GPUs and 6th-generation EPYC™ central processors across its data centres worldwide. The initial phase will begin with the shipment of hardware for the first 1 gigawatt of capacity, expected in the second half of 2026, and will use custom chips optimized for Meta’s AI workloads and the Helios rack-scale architecture co-developed by AMD and Meta through the Open Compute Project.
AMD’s announcement emphasized that the expanded partnership aligns product roadmaps across silicon, systems and software. Meta has been a longstanding customer for EPYC server CPUs and earlier generations of AMD GPUs, with this arrangement deepening that relationship at larger scale.
As part of the financial structure, AMD has issued Meta a performance-based warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones associated with Instinct GPU shipments are achieved. The first tranche vests with the initial 1-gigawatt of shipments, with additional tranches vesting as Meta’s purchases scale to 6 gigawatts. Vesting is further tied to AMD achieving certain stock price thresholds, and exercise is tied to Meta achieving key technical and commercial milestones. This type of arrangement shows a creative approach to long-term customer engagements in the semiconductor sector.
From a market perspective, the announcement had an immediate impact on AMD’s share price, which rallied sharply in U.S. trading following the news, validating investor interest in large-scale AI infrastructure commitments. Multiple financial outlets reported AMD shares rose notably, with one major financial journal citing a near 9% advance on the day of announcement, while trading in Meta’s stock was comparatively muted.
Analysts view the deal as a significant strategic development for AMD as it seeks to build out its presence in AI hardware, an area long dominated by rival Nvidia Corp. Although AMD’s overall market valuation remains well behind its larger competitor, the partnership with one of the largest consumers of AI compute signals broader industry recognition of AMD’s expanding product portfolio.
