Advanced Micro Devices (AMD) has agreed a landmark five-year deal to supply artificial intelligence chips to Meta Platforms, in an agreement that could be worth up to $60 billion — approximately £47 billion at current exchange rates.
The deal will see AMD provide high-performance AI processors to power Meta’s expanding network of data centres, which underpin services across Facebook, Instagram and WhatsApp, as well as the company’s growing generative AI ambitions. Initial deliveries are expected to begin in the second half of 2026.
Central to the agreement are AMD’s next-generation MI450 AI chips, designed to handle large-scale inference workloads — the stage at which trained AI models generate outputs for users. Meta is understood to have collaborated closely with AMD on aspects of the chip design.
The partnership represents a significant strategic move for Meta, which has historically relied heavily on Nvidia for advanced AI processors. By diversifying its supply chain, Meta aims to secure long-term access to critical hardware as competition for AI computing capacity intensifies.
As part of the arrangement, Meta will receive performance-based warrants that could allow it to acquire up to 10 per cent of AMD, subject to certain commercial and technical milestones being achieved. The agreement also includes custom central processing units intended to improve energy efficiency across Meta’s infrastructure.
For AMD, the contract marks its second major AI supply agreement in recent months and strengthens its position as a serious challenger in the AI semiconductor market. Chief executive Lisa Su has previously highlighted the company’s ambition to capitalise on rising global demand for custom silicon tailored to large-scale artificial intelligence workloads.
Analysts say the scale of the deal reflects the enormous capital investment now required to compete in AI, with access to advanced chips emerging as one of the defining factors in the sector’s growth.
Author: Kieran Seymour