Meta has secured an AI chip agreement with Advanced Micro Devices (AMD) shortly after committing to deploy millions of Nvidia GPUs. This move signals a diversified and aggressive AI infrastructure expansion strategy. The deal is estimated to be worth tens of billions of dollars over at least four years.
Meta said on 24 February 2026, Tuesday, that the multiyear deal with AMD involves deploying up to 6 gigawatts of the company’s graphics processing units for artificial intelligence data centers and includes the use of AI-optimized central processing units, or CPUs.
Under the agreement, Meta will deploy AMD’s MI450 GPUs inside its Helios rack-scale servers. The shipments are expected to begin later this year.
AMD stock climbed 7% on the news. Tuesday’s announcement is a critical development for AMD, which is far behind Nvidia in the AI chip market. NVIDIA is now the world’s largest publicly traded company, with a US$4.66 trillion valuation, and controls roughly 90% of the market, while AMD is valued at US$320 billion.
The deal includes a performance-based warrant that allows Meta to acquire up to 160 million AMD shares, roughly 10 percent of the company, if it meets major purchasing milestones.
“This is about making the right bets at the right time,” AMD CEO Lisa Su said.
Su said that the warrant structure is a “win-win” for shareholders, underpinning a “very ambitious” plan and financial model. She views the agreement as one of the “most transformational deals” for the chipmaker as it expands its AI capabilities.
“We’re early in the cycle of seeing what the ultimate payoff can be,” she said. “And that’s where ... we have to invest ahead of the curve and really point in the direction that is going to have the largest benefit.”
AMD’s Helios represents the first large-scale competition to Nvidia’s Grace Blackwell systems, which have experienced soaring demand since launch in 2024.
Meta’s move reflects a broader strategy to reduce dependency on a single vendor. Diversifying suppliers improves supply chain resilience, strengthens pricing leverage, and optimizes performance across different AI workloads.
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Meta has long been a customer of AMD and Nvidia. The social media giant also develops in-house processors and has been in talks with Google to deploy the search company’s tensor processing units in Meta's data centers in 2027. The structure of the deal reveals that, in the next phase of the AI boom, chip companies might be focusing on hardware, along with securing financial alliances to support future endeavors.
As demand for AI compute surges across the world, securing multiple chip partners ensures scalability, flexibility, and long-term infrastructure stability for its expanding generative AI ambitions.