$AMD

AMD to deploy up to 6 GW of AI chips for Meta's AI infrastructure
Advanced Micro Devices (AMD) is collaborating with $META to deploy up to 6 gigawatts of AMD Instinct chips to power Meta’s next generation of AI infrastructure.
Shares of AMD jumped about 12% premarket on Tuesday, while Meta's stock dipped around 1%.
The companies said the multi-year, multi-generation agreement expands their existing strategic partnership and aligns roadmaps across silicon, systems, and software to deliver AI platforms purpose-built for Meta’s workloads.
The first deployment will use a custom AMD Instinct graphics processing unit, or GPU, based on the MI450 architecture. Shipments supporting the first gigawatt deployment are slated to begin in the second half of 2026, powered by custom AMD Instinct MI450-based GPUs and 6th Gen AMD EPYC CPUs, codenamed “Venice,” running ROCm software and built on the AMD Helios rack-scale architecture.
Under the agreement, AMD has issued Meta a performance-based warrant for up to 160M AMD common shares, structured to vest as specific milestones associated with Instinct GPU shipments are achieved.
AMD Helios was developed jointly by AMD and Meta.
"This multi-year, multi-generation collaboration across Instinct GPUs, EPYC CPUs, and rack-scale AI systems aligns our roadmaps to deliver high-performance, energy-efficient infrastructure optimized for Meta’s workloads, accelerating one of the industry’s largest AI deployments and placing AMD at the center of the global AI buildout," said AMD's Chair and CEO Dr. Lisa Su.
Networking, AI stocks jump on back of AMD-Meta megadeal
Networking and artificial intelligence-related stocks jumped on Tuesday, following the news of the megadeal between AMD (AMD) and Meta Platforms (META).
Arista Networks (ANET) shares rose almost 6% in premarket trading, while Ciena (CIEN) and Cisco (CSCO) also saw gains. Lumentum (LITE), which makes optical networking equipment, also rose more than 1% in premarket trading, as did Coherent (COHR). Also seeing gains were Celestica (CLS), Arm (ARM), and Taiwan Semiconductor (TSM), which manufactures chips for AMD.
On Tuesday, AMD announced that Meta intends to spend “double-digit billions” per gigawatt on AMD chips and equipment, as part of a 6-gigawatt deal. The companies said the multi-year, multi-generation agreement expands an existing partnership and aligns roadmaps across silicon, systems, and software to deliver AI platforms purpose-built for Meta’s workloads.
Under the agreement, AMD issued Meta a performance-based warrant for up to 160M AMD common shares, structured to vest as specific milestones associated with Instinct GPU shipments are achieved.
“This multi-year, multi-generation collaboration across Instinct GPUs, EPYC CPUs, and rack-scale AI systems aligns our roadmaps to deliver high-performance, energy-efficient infrastructure optimized for Meta’s workloads, accelerating one of the industry’s largest AI deployments and placing AMD at the center of the global AI buildout,” said AMD's Chair and CEO Dr. Lisa Su.
AMD shares rose more than 10% in premarket trading following the announcement, while Meta shares slipped 0.7%. Nvidia (NVDA), which recently signed a multi-year deal of its own with Meta, fell fractionally.
In addition to the collaboration on GPUs, AMD and Meta are expanding their AMD EPYC processor partnership.
The companies said Meta will be a lead customer for 6th Gen AMD EPYC CPUs, dubbed “Venice” and "Verano," a next-generation EPYC processor designed with workload-specific optimizations to deliver leadership performance-per-dollar-per-watt.
"We expect this partnership to drive substantial multi-year revenue growth and be accretive to our non-GAAP earnings per share, marking another significant step forward in delivering on our ambitious long-term financial model," said Jean Hu, EVP, CFO, and treasurer, AMD.