New York, USA – Meta plans to make a massive deal that could exceed $100 billion to purchase AMD’s latest artificial intelligence chip (MI450). This move aims to enhance the capabilities of its data centers and expand its advanced computing infrastructure.
Total capacity 6 gigawatts
According to the announcement, the total capacity of the deal is approximately 6 gigawatts, with the first batch of deliveries expected in the second half of this year. A 1-gigawatt data center will be built initially, followed by subsequent deliveries until the target capacity is reached.
The deal also gives Meta an option to acquire up to a 10% stake in AMD. This is secured by a performance guarantee provided by the chipmaker.
160 million shares at a symbolic price
The agreement grants Meta the right to acquire up to 160 million AMD common shares at $0.01 per share. The first tranche of these shares will be granted upon delivery of the initial shipment, with the remaining tranches being granted gradually as the company increases its purchases until the agreed-upon full capacity is reached.
Fierce competition with Nvidia
This move comes days after Meta announced a long-term partnership with Nvidia to supply chips for its data centers. This reflects the accelerating race among major technology companies to enhance their artificial intelligence capabilities.
Through this deal, AMD aims to strengthen its position in the AI chip market and compete with Nvidia. Nvidia has made early progress in developing graphics processing units (GPUs) designed to run and train advanced AI systems.
