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.