AMD copy-pastes 6 GW chips-for-stock deal in new Meta agreement
The Register
February 24, 2026
AI-Generated Deep Dive Summary
AMD has signed a significant deal with Meta to supply 6 gigawatts (GW) of custom Instinct GPUs, marking a nearly identical agreement to the one it struck with OpenAI last fall. The first tranche of 1 GW chips, based on AMD's MI450 architecture, will be delivered by the second half of this year. This deal extends beyond hardware; Meta is also set to become the "lead customer" for AMD's next-gen EPYC CPUs, specifically Venice and Verano chips tailored for AI workloads.
The agreement includes a unique financial structure: AMD has issued warrants for up to 160 million shares of its common stock to Meta, valued at $0.01 per share. These warrants vest gradually as Meta purchases more computing capacity, with the final tranche contingent on AMD's stock price reaching $600. This arrangement aims to incentivize a long-term partnership while minimizing risk for AMD shareholders.
While this deal underscores AMD's push to compete with Nvidia in the AI hardware market, it also reflects a broader shift in the tech industry toward circular financing and strategic collaborations. Both Meta and OpenAI have committed to 12 GW of AMD GPUs, positioning AMD to gain significant market share in the AI space. However, the deal also highlights the potential risks for AMD if the AI "bubble" were to deflate, as enterprises might delay spending on such infrastructure.
This agreement matters because it signals AMD's strategic focus on capturing a larger slice of the rapidly growing AI hardware market. By aligning with major players like Meta and OpenAI, AMD is not only diversifying its customer base but also positioning itself as a key player in the future of AI-driven technologies. The deal's financial structure and performance-based incentives suggest a win-win strategy, ensuring both AMD and Meta have skin in the game for long-term success.
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Originally published on The Register on 2/24/2026