Meta Platforms has signed an artificial intelligence chip supply agreement worth approximately $60 billion with U.S. semiconductor company AMD, Reuters and other international media outlets reported on the 24th (local time).
AMD agreed to supply AI chips to Meta over the next five years. The deal includes an option for Meta to acquire up to 10% of AMD's shares.
"Meta will acquire its first stake in the second half of this year when 1GW of AI chips are shipped," AMD CEO Lisa Su said. "In a sense, Meta is making a big bet on AMD, and at the same time, it gives Meta the opportunity to participate in the gains if AMD shareholders deliver results."
Major international media assessed that this contract represents a meaningful achievement for AMD, which has been trailing Nvidia in the AI chip market. The structure of granting equity acquisition rights as a condition for purchasing AI chips is cited as the latest example of "circular deals" that have emerged in the AI industry since last year. AMD signed a similar agreement with OpenAI in October last year.
"We are providing high-performance, high-efficiency infrastructure optimized for Meta's work environment to support one of the industry's largest AI deployment projects," Su said. "We will position AMD at the center of global AI infrastructure expansion."