AMD(AMD.US)Catches Up to Nvidia(NVDA.US): A Key Battle: Meta(META.US) Secures 6 Gigawatt Computing Power Orders and Announces Investment to Strengthen Alliances

The Smart Finance APP has learned that Meta Platforms (META.US) recently announced plans to deploy data center equipment with a computing capacity of 6 gigawatts, based on AMD (AMD.US) processors. This significant deal marks a key victory for AMD in its race to catch up with NVIDIA (NVDA.US).

According to the agreement, Meta will purchase AMD-designed AI model chips and server equipment over five years starting in the second half of 2026. AMD CEO Su Zifeng revealed that each gigawatt of capacity in the deal will be worth “hundreds of billions of dollars.”

As part of the cooperation, Meta will receive phased warrants to purchase 160 million shares of AMD. When project milestones are reached and AMD’s stock price hits certain benchmarks, these warrants will become exercisable, making Meta a major shareholder in AMD.

This deal is the latest move in Meta’s ongoing expansion. CEO Mark Zuckerberg has prioritized AI as a key strategic focus, committing hundreds of billions of dollars to aggressively build out computing infrastructure.

Last month, Zuckerberg officially launched the Meta Compute initiative, aiming to build tens of gigawatts of computing power within this decade and gradually expand to hundreds of gigawatts. The goal is to create a strategic advantage over competitors. For reference, one gigawatt of capacity is roughly equivalent to the output of a nuclear power plant, enough to power about 700,000 households.

The partnership also signifies that AMD is directly competing with industry leader NVIDIA—just last week, NVIDIA announced a collaboration with Meta. This also indicates that despite investor concerns about a potential AI investment bubble, global spending on AI hardware continues to accelerate.

For Meta, working with AMD not only provides access to customized chip components but also allows deep involvement in the design of next-generation semiconductors.

Santosh Janardhan, Head of Global Infrastructure at Meta, said, “Our goals are very ambitious.” Meta will continue developing its own AI chips while also purchasing NVIDIA products, with three types of chips supporting different AI computing tasks.

“With our current scale, all three options (self-developed, AMD, NVIDIA) have their roles,” Janardhan said in an interview.

Janardhan, who reports directly to Zuckerberg, also revealed that the company has not yet decided which data centers will be equipped with AMD’s new chips. These processors are mainly used for AI inference, the practical application phase after training models.

Su Zifeng stated that Meta has been deeply involved in AMD chip design for some time and will also receive customized MI450 accelerators and future generations. Janardhan noted that the ability to precisely define chip requirements is a key reason why Meta chose to work closely with AMD.

“Our strategy is to accelerate at full scale,” Su Zifeng said. “Our collaboration with Meta has been very smooth from the start, and this agreement elevates our relationship to a new level.”

Currently, Meta is AMD’s second-largest customer and will play a more critical role in AMD’s growth strategy. AMD achieved $34.6 billion in sales last year, and Wall Street expects revenue to grow 34% this year. Even an additional $10 billion in revenue would significantly accelerate AMD’s pace in catching up with NVIDIA.

However, despite strong performance, AMD has recently faced investor skepticism: the market worries that the expansion of AI concept stocks may not support current valuations. AMD’s stock price surged 77% in 2025 but has fallen 8.2% so far this year.

Nevertheless, Meta’s investment clearly bets that AMD’s stock price is still in the early stages of a long-term upward trend. Some warrants become exercisable if the stock reaches $600, but AMD closed Monday at only $196.60.