Meta could end up owning 10% of AMD in new chip deal
Ars Technica
by
Michael Acton, Financial Times
February 24, 2026
AI-Generated Deep Dive Summary
Meta has reached a significant agreement with AMD to acquire 6 gigawatts of custom chips, potentially securing a 10% stake in the company as part of this deal. This partnership is expected to bolster Meta's AI capabilities, which are central to its future growth strategies. The collaboration underscores the importance of semiconductor technology in advancing artificial intelligence and highlights the strategic moves by major tech players to stay competitive in the AI race.
The deal represents a multi-billion dollar investment for AMD, with each gigawatt of compute capacity valued at double-digit billions. This arrangement not only ensures AMD's financial gain but also positions it as a critical supplier for Meta's ambitious AI projects. The acquisition of these specialized chips is designed to accelerate Meta's ability to develop and deploy advanced AI models, which are essential for its platforms like Facebook and Instagram.
This partnership matters because it signals a shift in the tech industry toward vertical integration, where companies invest heavily in custom hardware to gain a competitive edge. By securing a significant stake in AMD, Meta aims to stabilize its chip supply chain while ensuring access to cutting-edge technology tailored to its needs. This move could also influence broader trends in semiconductor manufacturing and AI development, setting an example for other tech giants looking to enhance their technological capabilities
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Originally published on Ars Technica on 2/24/2026