Meta signs long-term supply deal with AMD for AI hardware

Social Media Today

by Andrew Hutchinson

February 25, 2026

AI-Generated Deep Dive Summary

Meta has entered a significant long-term supply agreement with AMD to bolster its AI hardware capabilities. The deal involves Meta implementing 6GW of AMD Instinct GPUs to enhance its back-end infrastructure for next-generation AI development. This move underscores Meta's commitment to expanding its compute power and staying at the forefront of AI innovation, aligning with its goal of advancing personal superintelligence. The partnership is part of Meta's supplier diversification strategy, which aims to reduce dependency on any single vendor. While Meta recently announced a similar deal with Nvidia, this agreement with AMD introduces another critical component: a performance-based warrant for up to 160 million shares of AMD common stock. The vesting of these shares is tied to specific milestones, including GPU shipments and stock price thresholds, potentially granting Meta up to 10% ownership in AMD. This arrangement not only secures hardware access but also positions Meta as a key stakeholder in AMD's future decisions. For the tech sector, this deal highlights the growing importance of strategic partnerships in AI development. By diversifying its hardware suppliers and integrating advanced GPUs into its infrastructure, Meta is ensuring scalability and resilience in its AI initiatives. The agreement with AMD, combined with its partnership with Nvidia, signals a broader shift toward collaboration and investment in cutting-edge technology to maintain leadership in AI innovation. This approach not only strengthens Meta's supply chain but also sets a precedent for other tech companies looking to expand their AI capabilities.

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Originally published on Social Media Today on 2/25/2026