Meta Strikes $100B AI Chip Deal With AMD

The agreement allows Meta to purchase up to 10% of the chip firm over 5 years.

Published on Feb. 24, 2026

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Advanced Micro Devices (AMD) has agreed to sell up to $100 billion worth of artificial intelligence chips to Meta Platforms (Facebook's parent company) over the next five years. The deal also allows Meta to purchase as much as 10% of AMD's stock during that time period.

Why it matters

This deal is a significant win for AMD, as it positions the company as a major player in the AI chip market and diversifies its customer base beyond longtime leader Nvidia. For Meta, the agreement secures long-term access to critical AI computing power to support its ambitious AI initiatives.

The details

Under the terms of the agreement, Meta will purchase a large volume of AMD's latest AI-focused chips over the next five years, with the option to acquire up to a 10% equity stake in AMD. This co-design approach allows the two companies to optimize the hardware and software for Meta's specific AI needs. The deal is seen as a blow to Nvidia, which has long dominated the AI chip market.

  • The agreement was announced on February 24, 2026.

The players

Meta Platforms

The parent company of Facebook, Instagram, and other social media platforms, with a focus on developing advanced AI technologies.

Advanced Micro Devices (AMD)

A semiconductor company that designs and manufactures high-performance computer processors, graphics processing units (GPUs), and other related technologies.

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What they’re saying

“The structure of the Meta/AMD deal squarely fits the emerging 'closed-loop hyperscaler' pattern: a mega-cap AI customer gets long-term access to a key supplier's hardware, often in exchange for equity exposure and other strategic commitments.”

— Gadjo Sevilla, Analyst, eMarketer

“For a long time, it looked as if Nvidia was the only chip player in town, but that is increasingly not the case. Meta's deal with AMD is a blow to Nvidia, especially as the potential for the Facebook owner to take a stake in the chip maker could result in a closer working relationship going forward.”

— Dan Coatsworth, Head of Markets, AJ Bell

What’s next

The deal is expected to be finalized in the coming months, with Meta potentially acquiring up to a 10% stake in AMD over the next five years as it purchases the AI chips.

The takeaway

This agreement solidifies AMD's position as a major player in the AI chip market, challenging Nvidia's long-standing dominance. It also demonstrates Meta's commitment to investing heavily in AI infrastructure to support its ambitious technology initiatives.