Meta Platforms will deploy data centre equipment with a total capacity of 6 GW based on Advanced Micro Devices Inc. (AMD) processors.
According to AMD, shipments of chips and computer systems under the multi-year agreement with Meta will begin in the second half of 2026. The companies are planning a series of deals that value 1GW of capacity at ‘double-digit billions of dollars’, AMD CEO Lisa Su said.
As part of the deal, Meta will receive warrants from AMD that will allow it to buy up to 160 million shares of the company in stages. The rights to purchase the securities will arise by measure of the achievement of certain milestones in the chip supply agreement, as well as certain benchmarks for AMD’s share price.
“We expect this partnership to deliver significant revenue growth over several years and contribute to AMD’s adjusted earnings,” the company said in a statement.
Meta last week announced a major deal to supply chips to Nvidia Corp. for its data centres.
AMD’s securities added 10.6 per cent in previous trading on Tuesday, while Meta’s stock was down 0.7 per cent.