Meta strikes $100 billion AMD chip deal to power next-gen AI push

Meta has struck a multiyear chip agreement with Advanced Micro Devices (AMD) that could be worth as much as $100 billion, marking one of the largest artificial intelligence infrastructure deals to date as the social media giant accelerates its push toward advanced AI systems and what CEO Mark Zuckerberg has described as 'personal superintelligence.'

The deal will see AMD supply Meta with next-generation AI processors, including custom chips designed specifically for Meta’s workloads, beginning with large-scale deployments in data centers starting in the second half of 2026. These chips are expected to support AI inference — the process that allows trained models to generate responses and interact with users in real time.

As part of the agreement, Meta will receive performance-linked warrants allowing it to acquire up to 160 million AMD shares, potentially giving Meta a stake of around 10 per cent in the chipmaker if milestones are met. The unusual financial structure aligns the companies’ long-term interests, tying Meta’s infrastructure expansion directly to AMD’s technological progress.

The partnership underscores Meta’s urgency to secure reliable chip supply amid soaring demand for AI hardware. Analysts say the move reflects Meta’s strategy to diversify suppliers beyond Nvidia, which has dominated the AI chip market, and reduce its dependence on any single vendor.

Meta’s AI infrastructure plans are expanding rapidly, with the company expected to nearly double spending on AI systems to as much as $135 billion in 2026, part of a broader wave of investment across the tech sector. Major companies including Meta, Microsoft, Google and Amazon are collectively projected to spend over $630 billion on AI and data-center infrastructure this year.

The agreement positions AMD as a major competitor in the AI chip market and strengthens Meta’s ability to scale its own AI platforms, including its Meta AI assistant and AI-driven products across Facebook, Instagram and WhatsApp. The chips will help power Meta’s growing portfolio of generative AI services, recommendation systems and emerging intelligent assistants.

The deal also reflects Meta’s broader strategy of building the hardware backbone required to support increasingly complex AI systems. Earlier agreements with Nvidia and ongoing development of Meta’s own in-house silicon highlight the company’s multi-vendor approach to securing the compute power needed for next-generation AI.

Industry analysts say the scale of Meta’s investment underscores the intensifying competition among major tech companies to build more powerful AI systems capable of advanced reasoning and personalization — technologies seen as critical to the next phase of computing.