Pre-market surge of over 10%! AMD secures a five-year AI chip order from Meta, with total transaction value expected to exceed $100 billion

Tech giant Meta and AMD have reached a massive AI (artificial intelligence) computing power cooperation agreement.

On February 24th, local time, Meta and AMD announced an expansion of their strategic partnership. Starting in the second half of 2026, Meta will purchase AMD chips and computers over the next five years, deploying up to 6 gigawatts (GW) of computing power. Although specific amounts were not disclosed, AMD CEO Lisa Su stated that each gigawatt of capacity corresponds to a contract value of “hundreds of millions of dollars.” This suggests the total value of the agreement could exceed $60 billion and possibly reach over $100 billion.

As part of the agreement, AMD granted Meta a performance-based stock warrant, allowing the latter to purchase up to 160 million AMD common shares at an exercise price of $0.01 per share in multiple tranches. The warrant is directly linked to the deployment progress of AMD Instinct GPUs, with Meta receiving the first batch of shares upon reaching the initial 1 GW capacity target.

Additionally, the vesting of this warrant depends on AMD’s stock price reaching certain thresholds. If both parties achieve specific technical and commercial milestones, and AMD’s stock price hits a target of $600, Meta could ultimately acquire about 10% of AMD, becoming one of its major shareholders.

Last October, AMD reached a similar agreement with OpenAI. OpenAI will deploy up to 6 GW of AMD Instinct GPUs over the coming years, and AMD issued up to 160 million warrants to OpenAI, with exercise conditions tied to deployment progress and stock price milestones.

Following the announcement, AMD (Nasdaq: AMD) stock surged over 15% in pre-market trading on the 24th, and as of the time of writing, it is up over 10%. Meta (Nasdaq: META) stock experienced slight fluctuations.

The agreement further deepens the existing strategic cooperation between the two companies, covering multiple generations of AMD Instinct GPUs. They will coordinate roadmaps at the chip, system, and software levels to develop an AI platform tailored for Meta’s workloads. The initial deployment will use customized AMD Instinct GPUs based on the MI450 architecture.

Su Zifeng stated, “We are proud to further expand our strategic partnership with Meta as they advance AI development on an unprecedented scale. This is a multi-year, multi-generation collaboration covering Instinct GPUs, EPYC CPUs, and rack-scale AI systems.”

Meta CEO Mark Zuckerberg said, “We are very pleased to establish a long-term partnership with AMD to deploy efficient inference computing power and promote the development of personal superintelligence. This is an important step for Meta to diversify its computing power, and I believe AMD will remain a key partner for many years to come.”

In addition to GPUs, both parties will expand their cooperation on AMD EPYC CPUs. Meta will be among the first customers for the sixth-generation AMD EPYC Venice and the next-generation EPYC Verano chips.

Currently, Meta is actively pushing forward its AI computing deployment plan. The company expects capital expenditures in 2026 to range between $115 billion and $135 billion, nearly double its 2025 capital expenditure of $72.2 billion.

Just a week ago, Meta and NVIDIA also announced a multi-year, multi-billion-dollar chip procurement agreement. Under this deal, Meta will deploy millions of NVIDIA chips, covering on-premises deployment, cloud, and AI infrastructure.

To diversify risks and enhance bargaining power, tech giants like Meta are actively seeking more reliable chip suppliers. Meta’s Global Infrastructure Head Santosh Janardhan told foreign media, “Our ambitions are very high.” He pointed out that, given the massive scale of Meta’s data center and infrastructure development, participation from multiple chip vendors and technological pathways is necessary.

Chip analyst Ben Bajarin from market research firm Creative Strategies noted, “Meta is in a unique position to control the entire tech stack. They can use computing power from anyone, and this deal reflects the current industry situation where computing capacity is constrained.”