Quick overview

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Meta Platforms will install 6 gigawatts of data center equipment built on Advanced Micro Devices processors, a victory for the chipmaker’s efforts to overtake Nvidia Corp. AMD’s stock increased 9% to $213.84, its highest one-day gain since November. The stock of Meta increased by less than 1%

Meta will purchase AMD chips and computers built to run AI models starting in the second half of 2026 and continuing for five years. AMD Chief Executive Officer Lisa Su stated that the series of transactions will be valued at “double-digit billions” of dollars per gigawatt. However, she would not elaborate on the exact amount.

Meta will get warrants to purchase 160 million AMD shares over time as part of the agreement. When the project and AMD’s stock price hit specific benchmarks, the shares will vest, making Meta a significant stakeholder.  The deal is the latest in a massive spending binge by Meta, the owner of Facebook and Instagram.

AI is now the company’s top priority, according to CEO Mark Zuckerberg, who has promised to “aggressively front-load” computing capacity with hundreds of billions of dollars. To gain a competitive edge, the executive unveiled a new project last month called Meta Compute, which aims to build “tens of gigawatts this decade and hundreds of gigawatts or more over time.” A nuclear reactor can produce enough electricity to power about 700,000 homes, or one gigawatt.