Meta strikes up to $100B AMD chip deal as it chases ‘personal superintelligence’

Meta plans to acquisition perchance up to $100 cardinal worthy of AMD chips, capable to thrust astir six gigawatts of information halfway powerfulness demand, the companies announced Tuesday.

As portion of the multiyear agreement, AMD has issued Meta a performance-based warrant for up to 160 cardinal shares of AMD communal banal — oregon astir 10% of the institution — for $0.01 each, structured to vest alongside definite milestones. The afloat banal grant is conditional connected AMD’s stock price, which would request to deed $600 for Meta to person its last tranche, per The Wall Street Journal. AMD’s banal closed astatine $196.60 connected Monday.

Under the agreement, Meta volition acquisition AMD’s MI540 bid of GPUs and its latest procreation of CPUs. CPUs are progressively becoming a halfway pillar of the AI inference compute stack due to the fact that they’re efficient, easier to scale, and don’t necktie companies solely to Nvidia.

AMD has been dilatory gaining crushed arsenic AI firms look to trim their reliance connected Nvidia, which has been the longstanding person successful AI chips and has charged a premium for the title. Last October, AMD and OpenAI struck a similar woody trading equity for an statement to bargain chips.

Meta CEO Mark Zuckerberg said the firm’s concern with AMD is “an important step” arsenic it diversifies its compute and works towards “personal superintelligence.” Zuckerberg has defined idiosyncratic superintelligence arsenic AI systems designed to profoundly recognize and empower individuals successful their mundane lives.

Meta has pledged to put astatine slightest $600 cardinal successful U.S. information centers and AI infrastructure implicit the adjacent respective years, including a projected superior expenditure walk of $135 cardinal successful 2026. Meta precocious unveiled plans for a $10 cardinal gas-powered information halfway campus successful Indiana designed for 1 gigawatt of compute capacity.

The AMD concern comes a mates of weeks aft Meta struck a multiyear woody to grow its information centers with millions of Nvidia’s latest CPUs and GPUs. The Facebook-maker is besides moving connected its ain in-house chips but has reportedly deed delays.