AMD announces expanded strategic partnership with Meta: will deploy 6 gigawatts of GPUs to accelerate AI infrastructure, stock price surges 15%

IT House February 24 News, AMD announced today a 6 gigawatt GPU procurement agreement with Meta, providing multiple generations of AMD Instinct GPUs to support Meta’s next-generation AI infrastructure. Meta plans to deploy 1 GW by 2026.

As part of the agreement, to further align strategic interests, AMD has granted Meta performance-based warrants to purchase up to 16 million common shares of AMD. This could give Meta up to a 10% stake in AMD.

Following this news, AMD’s stock price surged by up to 15% in pre-market trading.

AMD stated that this agreement is an extension of the existing strategic partnership between the two companies, aimed at aligning their technology roadmaps at the chip, system, and software levels to create a tailored AI platform for Meta’s workloads. The initial deployment will use a customized version of the MI450 architecture-based AMD Instinct GPU, delivering gigawatt-scale AI platforms optimized for Meta’s workloads. Shipments supporting the first gigawatt deployment are expected to begin in the second half of 2026, centered around a customized AMD Instinct GPU based on the MI450 architecture, the sixth-generation AMD EPYC processor codenamed “Venice,” and an overall solution built on ROCm software and AMD Helios rack-level architecture. AMD Helios, jointly developed with Meta through the Open Compute Project, aims to realize scalable, rack-level AI infrastructure.

“We are proud to expand our strategic partnership with Meta, which is driving AI development on an unprecedented scale,” said Dr. Su Zifeng, AMD Chairman and CEO. “This multi-year, multi-generation collaboration covering Instinct GPUs, EPYC CPUs, and rack-level AI systems keeps our roadmaps aligned, enabling us to provide high-performance, energy-efficient infrastructure for Meta’s workloads, accelerating one of the largest AI deployments in the industry, and positioning AMD at the center of global AI development.”

“We are excited to establish a long-term partnership with AMD to deploy efficient inference computing and deliver personal superintelligence,” said Meta Founder and CEO Mark Zuckerberg. “This is an important step in Meta’s path toward computing diversification. I look forward to AMD being a key partner for many years to come.”

In addition to GPU collaboration, AMD and Meta are expanding their partnership on AMD EPYC processors. Meta has been a close partner of AMD for years, deploying millions of AMD EPYC CPUs and a large number of AMD Instinct MI300 and MI350 series GPUs across its global infrastructure. As AI infrastructure scales and becomes more complex, CPUs serve as a strategic pillar alongside GPUs in the AI compute stack, achieving efficiency, scalability, and coordinated scheduling. Based on a deeply aligned roadmap, Meta will be a leading customer for the sixth-generation AMD EPYC CPU codenamed “Venice,” which will adopt the next-generation EPYC processor “Verano,” optimized for specific workloads and designed to deliver leading performance per dollar per watt.

As part of the agreement, to further align strategic interests, AMD has granted Meta performance-based warrants to purchase up to 16 million common shares of AMD. The warrants will vest in tranches based on the achievement of specific milestones related to Instinct GPU shipments. The first tranche will vest upon the initial shipment of 1 gigawatt, with subsequent tranches vesting as Meta’s procurement scales up to 6 gigawatts. Vesting conditions are also linked to AMD reaching certain stock price thresholds, while exercise conditions are tied to Meta achieving key technological and commercial milestones.

“We expect this collaboration to drive significant revenue growth over many years and improve our non-GAAP EPS, marking an important step in realizing our ambitious long-term financial model,” said AMD Executive Vice President, CFO, and Treasurer Hu Jin. “This performance-based structure also keeps AMD and Meta closely aligned in execution and long-term value creation.”

AMD and Meta are working together across chip, system, and software layers to build global-scale AI infrastructure, accelerate AI innovation, and deliver AI-powered services and experiences to billions of users.