Lisa Su, chair and chief government officer of Superior Micro Gadgets Inc., shows an AMD Intuition MI455X GPU throughout the 2026 CES occasion in Las Vegas, Jan. 5, 2026.
Bloomberg | Bloomberg | Getty Photographs
Every week after Meta dedicated to utilizing thousands and thousands of Nvidia’s processors to energy its AI enlargement, the social media firm has inked one other mammoth chip deal, this time with Superior Micro Gadgets.
Meta stated on Tuesday that the multiyear cope with AMD entails deploying as much as 6 gigawatts of the corporate’s graphics processing models for AI information facilities and consists of use of AI-optimized central processing models, or CPUs. Early shipments of MI450 GPUs in AMD’s Helios rack-scale servers will start later this yr.
Tune in at 9:30 a.m. ET as Superior Micro Gadgets CEO Lisa Su joins CNBC TV to debate Meta’s chip cope with AMD. Watch in actual time on CNBC+ or the CNBC Professional stream.
AMD CEO Lisa Su stated in a press release that her firm is delivering “high-performance, energy-efficient infrastructure optimized for Meta’s workloads, accelerating one of many business’s largest AI deployments and inserting AMD on the heart of the worldwide AI buildout.”
The deal additionally features a performance-based warrant for Meta to accumulate 160 million AMD shares, about 10% of the corporate. The primary tranche vests when the primary 1 GW of Intuition GPUs are shipped. Different tranches vest as Meta makes purchases to 6GW.
Vesting can also be tied to inventory value thresholds for AMD and technical and industrial milestones for Meta.
AMD struck an identical cope with OpenAI in October, marking it as a viable second possibility for AI giants and hyperscalers.
That settlement additionally gave OpenAI warrants to accumulate 160 million shares of AMD and was tied to deployment and inventory value benchmarks.
In its earnings report final month, Meta dedicated to as much as $135 billion in capital expenditures this yr because it tries to maintain tempo with its megacap friends in addition to OpenAI and Anthropic within the world AI race. Total, Meta has plans for 30 information facilities, together with 26 within the U.S.
Tuesday’s announcement is a crucial improvement for AMD, which is way behind Nvidia within the AI chip market. Nvidia is now the world’s largest publicly traded firm, with a $4.66 trillion valuation, and controls roughly 90% of the market, whereas AMD is valued at $320 billion.
“Meta is in a novel place to manage the complete stack they usually can use whoever’s compute they need,” stated chip analyst Ben Bajarin of Inventive Methods. “It is only a punctuation level on the truth that we’re compute constrained, and offers will probably be completed throughout the board.”
Phrases of the settlement weren’t offered, however Bajarin, who was briefed on the deal, estimates that it is price tens of billions of {dollars} over a minimum of 4 years, as a result of “six gigawatts would take fairly a while to deploy,” he stated.
Bajarin stated a key piece of the settlement, and the way it’s completely different from Meta’s pact with Nvidia, is that the primary deployment entails custom-made GPUs.
“We have no indication Nvidia is doing that,” Bajarin stated. “It is a great way for them to win a few of these offers.”
AMD’s Helios represents the primary large-scale competitors to Nvidia’s Grace Blackwell programs, which have skilled hovering demand since launch in 2024.
Nvidia reviews quarterly earnings on Wednesday, and analysts anticipate income development of 68% from a yr earlier to $66 billion, in accordance with LSEG. Earlier this month, AMD reported gross sales development for the fourth quarter of 34% to $10.27 billion.
Meta has lengthy been a buyer of AMD and Nvidia. Meta additionally develops in-house processors and, in accordance with a report late final yr in The Info, had been in talks with Google about deploying the search firm’s tensor processing models in Meta information facilities in 2027.
WATCH: How AMD turned a chip large and at last caught Intel
