Mikkel Christensen
Meta has signed a multi-year agreement with chipmaker AMD to secure large-scale deliveries of advanced AI processors.
Meta has signed a multi-year agreement with chipmaker AMD to secure large-scale deliveries of advanced AI processors.
The deal highlights how major technology companies are moving from short-term purchasing toward long-term supply contracts to guarantee computing power.
According to TechWire Asia, citing Reuters, the agreement could be worth around 60 billion dollars over five years. Deliveries are expected to begin in the second half of 2026.
Long-term access to computing power
Meta will gain access to AMD’s next generation of AI chips, including hardware designed for inference tasks — where trained AI models are deployed in real-world applications and generate responses in real time.
The company has significantly expanded its AI infrastructure in recent years to support features across its social platforms, advertising tools and internal systems. That expansion requires massive data center capacity and stable access to specialized processors.
Reuters reports the agreement could potentially provide up to six gigawatts of computing capacity, underscoring the enormous energy and infrastructure demands behind modern AI development.
Strategic partnership
As part of the collaboration, AMD has issued a performance-based warrant that could grant Meta access to up to 160 million shares if certain milestones are met. That could translate into an ownership stake of around 10 percent.
The structure reflects a broader shift in which relationships between chipmakers and hyperscale companies are becoming more strategic and long-term.
Diversifying the supply chain
Meta continues to work with Nvidia, which dominates the AI accelerator market. However, the AMD agreement signals a clear effort to diversify suppliers and reduce dependence on a single partner.
Explosive demand for AI hardware has created global bottlenecks. By entering multi-year supply agreements, Meta aims to secure both capacity and stability in its AI expansion.
The development underscores that the AI race is not only about software and algorithms — but increasingly about access to chips, data centers and energy.
Sources: TechWire Asia
