Meta strikes up to $100B AMD chip deal as it chases 'personal superintelligence' | TechCrunch

TechCrunch

by Rebecca Bellan

February 24, 2026

AI-Generated Deep Dive Summary

Meta has inked a significant deal with AMD to purchase up to $100 billion worth of AI chips, marking a major shift in its strategy to reduce reliance on Nvidia and expand its data center capabilities. The multiyear agreement includes a performance-based warrant for up to 160 million shares of AMD stock, valued at approximately 10% of the company, which will vest based on AMD’s share price hitting $600. This move underscores Meta's growing focus on CPU technology, which is seen as more efficient and scalable for AI inference tasks compared to Nvidia's dominant GPU offerings. AMD CEO Lisa Su highlighted the surge in demand for CPUs driven by the AI revolution, emphasizing that the company’s portfolio is well-positioned to meet this growing need. The deal follows a similar agreement with OpenAI last year, reflecting a broader trend among tech giants to diversify their chip suppliers as they seek to reduce dependency on Nvidia. Meta CEO Mark Zuckerberg described the partnership with AMD as "an important step" in its goal to develop "personal superintelligence"—AI systems designed to deeply understand and empower individuals. Meta's $600 billion commitment to U.S. data centers and AI infrastructure over the next decade underscores its ambition to lead in this space. The company is also developing custom chips but has faced delays, making partnerships with established chipmakers like AMD and Nvidia crucial for scaling its operations. With plans for a $10 billion gas-powered data center campus in Indiana, Meta is rapidly expanding its compute capacity to meet the demands of advanced AI technologies. This strategic shift by Meta signals a broader industry trend toward greater diversity in AI chip suppliers, which could reshape the competitive landscape in the tech sector. As companies like Meta seek to reduce reliance on Nvidia, AMD and other competitors are poised to gain significant market share. The deal also highlights the growing importance of CPUs in AI infrastructure, offering a more cost-effective and scalable alternative for inference workloads. For readers interested in tech, this partnership matters because it reflects the broader transformation happening in the AI chip industry. Meta's move to diversify its chip suppliers not only reduces dependency on Nvidia but also positions AMD as a key player in the race for AI dominance. This shift could lead to more competition, innovation, and potentially lower costs for consumers as the technology evolves.

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Originally published on TechCrunch on 2/24/2026