Meta just signed a blockbuster chip deal with AMD, hot off the tail of its Nvidia tie-up
Business Insider
February 24, 2026
AI-Generated Deep Dive Summary
Meta has entered a significant new partnership with AMD to secure 6 gigawatts of AI chips, marking another major move in its strategy to build advanced AI infrastructure. This deal follows Meta's recent agreement with Nvidia and underscores the company's focus on strengthening its position in the AI chip market. The multi-year agreement includes the deployment of AMD's custom Instinct GPUs, with shipments set to begin in the second half of 2026. Additionally, Meta has the option to acquire up to 10% of AMD's stock, contingent on meeting shipping milestones.
AMD's recent success extends beyond Meta, as it has also finalized a multi-year deal with OpenAI to supply AI chips, solidifying its role as a key player in the tech industry. The company's stock saw a notable rise of nearly 12% in premarket trading after the announcement, reflecting investor confidence in these strategic partnerships.
This partnership matters for businesses because it highlights the growing importance of AI chips in driving innovation across industries. As companies like Meta and OpenAI invest heavily in AI capabilities, the demand for high-performance chips continues to rise, positioning AMD as a critical supplier in this competitive landscape. The deal also signals AMD's ability to compete with established players like Nvidia, further diversifying its customer base and reinforcing its position in the semiconductor market.
For Meta, the agreement with AMD represents another step in its ambitious plan to build a robust AI ecosystem, which is essential for advancing projects like the metaverse and other cutting-edge initiatives. By securing multiple chip suppliers, Meta aims to ensure flexibility and resilience in its technology stack, while also contributing to the broader evolution of AI hardware.
Overall, this deal underscores the dynamic nature of the tech industry and the accelerating pace of innovation in AI chips. For businesses and investors, it serves as a reminder of the pivotal role that semiconductor companies like AMD will play in shaping the future of technology and AI-driven applications.
Verticals
businessfinance
Originally published on Business Insider on 2/24/2026