Catenaa, Tuesday, February 24, 2026- AMD stock jumped by over 8% on Tuesday after it announced a multiyear agreement under which Meta will purchase upward of 6 gigawatts of AI chips.
As part of the deal, announced Tuesday, AMD will issue Meta 160 million shares of common stock that will vest in a series of tranches if AMD hits certain milestones, the first of which will hit when AMD ships its first 1 gigawatt of chips.
“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,” AMD CFO Jean Hu said in a statement.
“The performance-based structure also tightly aligns AMD and Meta around execution and long-term value creation.”
The first GPUs, AMD’s MI450 line, will be deployed in the company’s Helios rack-scale data center systems, complete with EPYC CPUs, in the second half of the year.
Meta says it will also purchase a large additional number of CPUs, including AMD’s Venice chip and its next-generation Verano processor.
CPUs are becoming an increasingly important component for AI data centers as companies look toward running agentic AI services and focus on inference, or running models.
Last week, Meta announced a separate multiyear agreement with AMD rival Nvidia that will see the chipmaker provide Meta with millions of its Blackwell and Rubin GPUs.
Nvidia also said Meta will host the first large-scale deployment of its Grace CPU servers.
Meta’s agreement with AMD comes as the company is set to spend upwards of $135 billion in capital expenditures throughout 2026 as part of its AI expansion plans. That will pay for everything from data center construction and chips to training models.
