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Meta Signs $60 Billion AI Chip Deal with AMD, Gets Option to Buy 10% Stake

Key Points
  • Meta has reportedly agreed to purchase $60 billion worth of AI chips from AMD.
  • The deal includes an option for Meta to buy up to 10% of AMD's shares over five years.
  • AMD made a similar agreement with OpenAI last year, also including a 10% purchase option.

Meta has reportedly entered into a massive $60 billion agreement with chipmaker AMD to purchase AI processors, according to technology news sources. The deal, which involves chips estimated to consume 6 gigawatts of power collectively, also grants Meta an option to acquire up to 10% of AMD's shares over the next five years.

This marks the second major agreement of this type for AMD in less than a year, following a similar arrangement with OpenAI last October that also included an option for the AI company to purchase a 10% stake in the chipmaker. The Meta deal has reportedly boosted AMD's stock price by nearly 9% following the announcement.

Despite these significant contracts, industry analysts reportedly still consider AMD to be trailing behind its main competitor Nvidia in the AI chip market. The 6-gigawatt power consumption of the chips ordered by Meta is estimated to be equivalent to the electricity usage of approximately 4.5 million households.

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