Meta and AMD have signed a multi-year agreement under which Meta will deploy up to 6 gigawatts of AMD Instinct GPUs, AMD"s powerful GPUs designed for data centers and direct competitors to NVIDIA"s H100 chips, across its AI infrastructure. Analysts estimate the deal at over $100 billion, with an important detail that could allow Meta to buy AMD shares for a favorable price.
That detail is buried near the bottom of AMD"s announcement, and absent entirely from Meta"s version. It says that AMD issued Meta a warrant, essentially a legal option to buy stock at a locked-in price, for up to 160 million AMD shares. This means that even if AMD shares go up, Meta could buy them for a pre-determined price. With full vesting, this means Meta could end up potentially owning 10% of AMD. However, the deal has some important caveats, as it allows Meta to buy at the lock-in price only if this agreement delivers.
The first batch of shares unlocks when AMD delivers the first 1 gigawatt (GW) of hardware. The deal covers multiple generations of AMD"s Instinct GPU line, and AMD is expected to deliver up to 6GWs of hardware. To put this into perspective, 6GW measures raw computing capacity rather than electricity draw, but it still implies that AMD will ship hundreds of thousands of high-end GPUs deployed across dozens of data centers, which is enough compute to rival the output of several large nuclear power plants.
AMD will start delivering the first GPUs in the second half of 2026. Analysts at Wolfe Research put the deal"s potential value at $15 to $20 billion per gigawatt, which means the full 6GW could net $90 to $120 billion in revenue for AMD over time. It"s worth noting that Meta was already an AMD customer before this deal, so not all of that figure is new money on the table.
What"s particularly interesting is that Meta signed a hardware deal with NVIDIA just a week ago. Adding AMD to the list of suppliers means that Meta wants to diversify its supplier portfolio, instead of relying on a single chipmaker. AMD also signed an identical 6GW deal with OpenAI in October 2025, including the same 160 million-share warrant structure.
Looking at this from a distance, it"s hard not to notice that Big Tech is essentially just circling billions amongst themselves. The broader market is currently experiencing something that analysts call circular investing, a phenomenon where companies are trading assets without the involvement of customers outside the industry. AMD needs Meta to validate its hardware, Meta receives AMD equity as part of the arrangement, AMD"s stock rises on the news, and the loop continues. Other giants like Microsoft, Google, OpenAI, Amazon, NVIDIA, etc. are also participating in this dynamic, with their own inter-connected partnerships.
At the same time, consumer hardware prices are at an all-time high.