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New Delhi: Recently, Meta has reached an agreement to purchase millions of powerful AI chips from processor manufacturer AMD, in which Meta could now become a major shareholder. They have entered into a partnership. Meta’s deal with AMD will come only days after the company, led by Mark Zuckerberg, stated it had agreed to deploy millions of processors over the next several years from the AMD rival, with its biggest competitor, Nvidia.
After the five largest US cloud and AI infrastructure providers, which include Microsoft, Alphabet, Amazon, Meta, and Oracle, have collectively committed to spending more than $650 million (roughly Rs 5,400 – 5,500 crore) on capital expenditure in 2026, and nearly doubled from 2025.
AMD has also committed to supplying Meta with up to 6 gigawatts worth of graphics processing units, chips fundamental to powering AI. AMD’s stock has jumped 6.5% at the opening on Wall Street. No dollar figure was offered in the joint communique, but the transactions represent a double-digit amount in the billions of dollars.
Mark Zuckerberg is very excited to form a long-term partnership with AMD to deploy efficient inference computing and to deliver personal superintelligence. And he expects that AMD will be an important partner for many years to come.
AMD has also issued Meta the financial option that can be converted to shares that would make the social media giant a major shareholder if the chip company hits certain performance benchmarks in the coming years. Meta deal also follows the other major AI partnership AMD has been striking as it seeks to gain ground on Nvidia, the AI chip powerhouse.
Meta’s doubling down on AI is seen by some of the investors as the riskier bet than that of other tech giants. Meta doesn’t have the cloud service, and it lacks a direct revenue stream tied to its AI investments.
Meta also stated that it benefits from the AI through the improved performance in its core digital ads business through better targeting. Meta has also been releasing the AI features, such as AI characters, on its world-leading platforms, but in January, Meta also stated that it was temporarily suspending teenagers’ access to them as it has perfected the products.
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