COMPETITIVE · USA
Meta–AMD multi-year AI chip supply and equity-linked deal
Change
Meta and AMD announced a multi-year agreement for Meta to buy over 6GW of AMD AI GPUs, with AMD issuing Meta 160M performance-vesting shares tied to shipment milestones and first MI450 deployments slated for 2H this year.
Why it matters
The agreement commits Meta to purchase upward of 6GW of AMD AI chips, shifting Meta’s compute sourcing and AMD’s demand visibility from discretionary buys to a contracted, multi-year volume. AMD will issue Meta 160 million shares that vest in tranches only if AMD meets shipment milestones, with the first tranche triggered when AMD ships its first 1GW of chips—linking dilution to delivery. The first GPUs (AMD MI450) are scheduled to be deployed in Meta’s Helios rack-scale systems in the second half of the year, creating a concrete implementation window. Meta also stated it will buy additional AMD CPUs (Venice and next-gen Verano), reinforcing CPU capacity as a parallel constraint in AI data centers. The deal formalizes a major supplier-customer alignment amid heavy industry capex on AI infrastructure.
Implications
- • Meta’s GPU supply becomes more contractually secured vs spot/short-term sourcing
- • AMD equity dilution becomes contingent on shipment execution (milestone-vested shares)
- • A 2H deployment window sets a near-term delivery/installation cadence for MI450 systems
- • CPU procurement (Venice/Verano) adds parallel demand pressure on data-center CPU supply
Who is affected
- • Meta AI infrastructure and data-center procurement teams
- • AMD data-center GPU/CPU product and supply-chain operations
- • Competing hyperscalers and large AI compute buyers seeking GPU capacity
- • Data-center system integrators tied to rack-scale deployments (e.g., Helios systems)
Source
Topics
Technology & Innovation Artificial Intelligence Cloud & Data Semiconductors