Meta Signs Up to $100B AMD Chip Deal, Reducing Nvidia Dependence

Overview

Meta announced on February 24 a multiyear agreement to purchase potentially up to $100 billion worth of AMD AI chips. The deal centers on AMD's MI450 accelerators, with shipments expected to support the first gigawatt of data center deployment in the second half of 2026.

Equity Component

Beyond chip purchases, AMD issued Meta warrants to buy 160 million shares—roughly 10% of the company—at just $0.01 per share. AMD's stock must reach $600 (roughly 3x the current ~$200) to unlock the full grant, tying both companies' fortunes together.

Reducing Nvidia Lock-in

The deal is the latest move in Meta's campaign to diversify its chip supply chain. Just two weeks prior, the company had signed a separate Nvidia expansion deal; the AMD agreement signals Meta's intent to avoid dependence on any single vendor as it scales AI infrastructure globally.

Personal Superintelligence Vision

Meta frames these investments as essential to building personal superintelligence—advanced AI tailored to individual users. The company plans to spend $135 billion on AI capex in 2026 alone, with a long-term commitment of at least $600 billion in U.S. data centers and AI infrastructure.

Market Implications

Fortune called the deal a turning point for AMD CEO Lisa Su. With Meta, Microsoft, and Amazon collectively pumping billions into AMD and custom accelerators, the AI chip market appears to be entering a more diversified era after years of near-total Nvidia dominance.

Source: TechCrunch