Meta Signs $60 Billion AI Chip Deal with AMD Including 10% Stake Purchase
In Brief
Meta agrees to a $60 billion five-year deal to buy AI chips from AMD and acquire a 10% stake in the company.
Key Facts
- Meta has agreed to purchase $60 billion worth of artificial intelligence chips from AMD over five years
- The deal includes Meta acquiring a 10% ownership stake in AMD
- AMD describes the agreement as a significant investment in artificial intelligence technology
- The transaction is part of AMD's efforts to compete with Nvidia in the AI chip market
- Meta owns Facebook, Instagram, and WhatsApp
What Happened
Meta, the parent company of Facebook, Instagram, and WhatsApp, has entered into a five-year agreement to purchase $60 billion in AI chips from semiconductor company AMD. As part of the deal, Meta will also acquire a 10% stake in AMD. AMD characterized the deal as a major investment in AI technology and a strategic move to enhance its position against competitors like Nvidia.
Why It Matters
This deal represents a substantial financial commitment by Meta to secure AI chip supply amid growing industry investment in artificial intelligence. It also signals AMD's ambition to strengthen its market share in the AI chip sector, challenging Nvidia's dominance. The partnership could influence the competitive dynamics and innovation pace in AI hardware development.