Meta and Amd announce 6-gigawatt GPU deal as part of AI build-out, AMD stock jumps

Meta announced a multiyear agreement with amd on Tuesday that will have Meta purchase upward of 6 gigawatts of AI chips as part of its AI build-out and will see AMD issue 160 million shares of common stock to Meta tied to performance milestones. The pact moves both companies deeper into data-center hardware commitments as AMD shares jumped in early trading.

Deal terms: 6 gigawatts, 160 million shares and milestone vesting

The agreement will deliver upward of 6 gigawatts' worth of AI chips to Meta and includes AMD issuing Meta 160 million shares of common stock that will vest in a series of tranches if AMD meets certain milestones. The first tranche is set to hit when AMD ships its first 1 gigawatt of chips. AMD shares jumped as much as 10% in premarket trading before paring those gains in the regular session.

AMD CFO Jean Hu commented on the arrangement, saying, “We expect this partnership to drive substantial multi-year revenue growth and be accretive to our non-GAAP earnings per share, marking another significant step forward in delivering on our ambitious long-term financial model. ” She added, “The performance-based structure also tightly aligns AMD and Meta around execution and long-term value creation. ”

Amd's MI450 GPUs to be deployed in Helios rack-scale systems

The first GPUs from the deal will be AMD’s MI450 line and are scheduled for deployment in Meta’s Helios rack-scale data center systems, complete with EPYC CPUs, in the second half of the year. Meta also says it will purchase large additional CPUs, including AMD’s Venice chip and its next-generation Verano processor. The company framed those CPU buys against broader shifts: CPUs are becoming an increasingly important component for AI data centers as firms look toward running agentic AI services and focus on inference, or running models.

Separate Nvidia agreement and Grace CPU server deployment

Last week, Meta announced a separate multiyear agreement with AMD rival Nvidia that will see Nvidia provide Meta with millions of its Blackwell and Rubin GPUs. Nvidia also said Meta will host the first large-scale deployment of its Grace CPU servers. Nvidia traditionally pairs a Grace CPU with two Blackwell or Blackwell Ultra processors to form GB200 and GB300 superchips that slot into rack-scale platforms.

Meta's capital plans: $135 billion in 2026 and collective industry spending

Meta’s agreement with AMD comes as the company is set to spend upwards of $135 billion in capital expenditures throughout 2026 as part of its AI expansion plans. That funding will pay for everything from data center construction and chips to training models. Meta, Amazon, Google, and Microsoft plan to collectively spend some $650 billion on AI, a level of investment that has given some investors pause as they assess whether the outlays will bear fruit.

Market reaction, stock moves and questions about custom chips

Meta has fared the best among the big spenders mentioned, with shares down just 2. 5% since it reported earnings on Jan. 28 and announced its investing plans. Google stock has dropped 8. 7% since its own news, Amazon has fallen 11. 9%, and Microsoft has declined 15. 5%. The announcement lifted amd shares early, but broader chip stocks have cooled on Wall Street amid questions of an AI bubble and fears that custom chips built by Amazon, Google, Meta, and Microsoft could pose a threat to GPU supremacy in the data center.

In November, a report said Meta was in talks with Google to use its TPU chips for AI applications. Analysts say it will be difficult for those bespoke chips to supplant the more general-purpose AI processors that Nvidia and AMD build.