Meta may trade AI chips for shares in its latest AMD deal

Engadget

by Steve Dent

February 24, 2026

AI-Generated Deep Dive Summary

Meta has reached a landmark agreement with AMD to acquire up to six gigawatts of AI chips in exchange for shares, potentially granting Meta up to a 10 percent stake in AMD if the deal is fully executed. Under the terms, AMD will supply Meta with Instinct GPUs based on the MI450 architecture, optimized for Meta's workloads. The first gigawatt shipment is set to begin in late 2026, with additional tranches vesting as Meta scales up to six gigawatts. The deal structure mirrors a similar arrangement AMD made with OpenAI last year, where AMD received a significant stake in exchange for chip supplies. This partnership underscores Meta's strategic shift away from NVIDIA, which has long dominated the AI chip market. By diversifying its chip suppliers, Meta aims to build a more resilient infrastructure and reduce reliance on any single vendor. The deal also expands Meta's use of AMD EPYC CPUs, with plans to deploy millions of them and become an early adopter of AMD's next-generation processors. Analysts note that such arrangements create complex interdependencies between AI companies and chip manufacturers. While these deals can offer mutual benefits, they also carry risks. If demand for AI technology fails to meet inflated market expectations, the financial impact on both parties could be magnified. The deal highlights the growing competition in the AI chip market and the lengths companies are willing to go to secure reliable supplies. For tech enthusiasts and industry watchers, this agreement offers insight into the evolving dynamics of the AI and semiconductor industries. It reflects the growing importance of alternative suppliers like AMD as AI companies seek to diversify their partnerships. The potential for Meta to gain significant equity in AMD adds another layer of complexity to an already intricate relationship. This deal will likely be closely monitored as a test case for future collaborations between AI firms and chip manufacturers.

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Originally published on Engadget on 2/24/2026