Amd to Issue 160 Million Shares as Meta Commits to Over 6-Gigawatt GPU Purchase
Meta has entered a multiyear agreement that will see the company buy upward of 6 gigawatts of AI chips, and amd will issue 160 million shares of common stock to Meta as part of the transaction announced Tuesday. The stock will vest in tranches tied to performance milestones, with the first vesting when amd ships its first 1 gigawatt of chips.
Amd share issuance and milestone structure behind the 6-gigawatt commitment
The deal calls for amd to grant Meta 160 million common shares that vest if amd meets specified milestones. The agreement’s initial milestone is tied to shipping the first 1 gigawatt of chips; further tranches will vest as additional milestones are met. The multiyear purchase commitment is for upward of 6 gigawatts' worth of AI chips as part of Meta’s AI build-out and was announced Tuesday.
MI450 GPUs to arrive in Helios racks with EPYC CPUs in the second half of the year
The first GPUs covered by the deal are amd’s MI450 line, which will be deployed in Helios rack-scale data center systems complete with EPYC CPUs in the second half of the year. Meta also plans to buy additional CPUs from amd, including the Venice chip and the next-generation Verano processor, reflecting a broader push to combine GPUs and CPUs for AI workloads.
Meta’s parallel Nvidia agreement and Grace CPU deployment
Last week, Meta announced a separate multiyear agreement with Nvidia that will supply Meta with millions of Blackwell and Rubin GPUs. Nvidia also said Meta will host the first large-scale deployment of its Grace CPU servers. Nvidia typically pairs its Grace CPU with two Blackwell or Blackwell Ultra processors to form GB200 and GB300 superchips that slot into rack-scale platforms.
Financial and market implications: capex, stock moves and sector caution
The pact with amd arrives as Meta plans to spend upwards of $135 billion in capital expenditures throughout 2026 to support data center construction, chips and model training. Meta, Amazon, Google and Microsoft together plan to spend about $650 billion on AI this year. That scale of investment has given some inventors pause as they digest whether the spending will bear fruit.
Market reactions have been mixed: amd shares jumped as much as 10% in premarket trading before paring those gains in the regular session. Since announcing its investing plans, Meta’s shares are down 2. 5% since it reported earnings on Jan. 28. Google stock has dropped 8. 7% since its own news, Amazon has fallen 11. 9%, and Microsoft has declined 15. 5% since revealing its spending strategy. Wall Street has cooled on chip stocks amid questions of an AI bubble and concerns that custom chips built by Amazon, Google, Meta and Microsoft could threaten GPU supremacy in the data center.
TPU talks with Google and analysts’ view on custom chips
In November, Meta was in talks with Google to use Google’s TPU chips for AI applications. Analysts say it will be difficult for those chips to supplant the more general-purpose AI processors that Nvidia and amd build.
Executive comments and alignment on long-term value
Jean Hu, amd’s chief financial officer, said the company expects the partnership to drive substantial multi-year revenue growth and to be accretive to amd’s non-GAAP earnings per share, marking a significant step toward its long-term financial model. Hu added that the performance-based structure tightly aligns amd and Meta around execution and long-term value creation.
