Meta Just Bet $60 Billion on the Company That's Not Nvidia
Facebook's parent company signed a massive deal to buy AMD's AI chips and even took a 10% stake in the chipmaker, signaling a major shift in the AI hardware wars.
For years, Nvidia has been the undisputed king of AI chips. Every tech giant lined up to buy their processors. But Meta just made a move that could change the game.
Meta (the company behind Facebook and Instagram) signed a deal with AMD worth roughly $60 billion over five years. That's not a typo. Sixty. Billion. Dollars. For computer chips.
Here's what makes this deal unusual: Meta isn't just buying chips. They're also buying about 10% of AMD itself, meaning they now own a chunk of the company making their hardware. It's like a restaurant chain buying a stake in its food supplier.
The chips in question are AMD's upcoming MI450 processors, and the numbers are staggering. Meta is set to receive six gigawatts worth of computing power. To put that in perspective, one gigawatt could power roughly 750,000 homes. Meta wants six of those, but for AI instead of houses.
Shipments start in the second half of 2026, and this comes just days after Meta also expanded a deal with Nvidia. In other words, Meta is buying AI chips from everyone because they can't get enough.
Why? Because running AI takes an insane amount of computing power, and Meta is in an arms race with Google, OpenAI, and others to build the smartest systems possible.
As reported by Reuters and The Guardian.
Source: Reuters
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