<figure id="attachment_3138489" aria-describedby="caption-attachment-3138489" style="width: 1600px" class="wp-caption aligncenter"><img loading="lazy" class="size-full wp-image-3138489" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/08/9ca97f7a-meta-afp-190825.webp" alt="Meta AFP 190825" width="1600" height="1000" /><figcaption id="caption-attachment-3138489" class="wp-caption-text">Meta&#8217;s doubling-down on AI is seen by some investors as a riskier bet than that of other tech giants.  (AFP pic)</figcaption></figure>
WASHINGTON: American tech giant Meta has reached an agreement to purchase millions of powerful AI chips from processor manufacturer AMD, in which it could become a major shareholder, the two companies announced Tuesday.
The Facebook and Instagram giant is on a massive spending spree as it battles to keep up with Google, OpenAI and Microsoft in the generative AI race sparked by the release of ChatGPT in 2022.
Meta&#8217;s deal with AMD comes only days after the company led by Mark Zuckerberg said it had agreed to deploy millions of processors over the next few years from AMD rival Nvidia.
The five largest US cloud and AI infrastructure providers — Microsoft, Alphabet, Amazon, Meta, and Oracle — have collectively committed to spending more than US$650 billion on capital expenditure in 2026, nearly doubling 2025 levels.
AMD has committed to supplying Meta with up to six gigawatts worth of graphics processing units (GPUs), chips fundamental to powering artificial intelligence. AMD&#8217;s stock jumped 6.5 percent at opening on Wall Street.
No dollar figure was provided in the joint communique, but the transactions represent a &#8220;double-digit&#8221; amount in billions of dollars, AMD CEO Lisa Su told analysts, according to Bloomberg.
&#8220;We&#8217;re excited to form a long-term partnership with AMD to deploy efficient inference compute and deliver personal superintelligence,&#8221; said Mark Zuckerberg, founder and CEO of Meta. &#8220;I expect AMD to be an important partner for many years to come.&#8221;
In addition, AMD issued Meta a financial option that can be converted to shares that would make the social media giant a major shareholder if the chip company hits certain performance benchmarks in the coming years.
The Meta deal follows other major AI partnerships AMD has been striking as it seeks to gain ground on Nvidia, the AI chip powerhouse.
In October 2025, AMD and ChatGPT-maker OpenAI announced a very similar multibillion-dollar partnership, with OpenAI committing to purchasing six gigawatts worth of AMD chips.
Meta&#8217;s doubling-down on AI is seen by some investors as a riskier bet than that of other tech giants.
Unlike Amazon, Microsoft, and Google, Meta doesn&#8217;t have a cloud service and lacks a direct revenue stream tied to its AI investments. Meta says it benefits from AI through improved performance in its core digital ads business via better targeting.
The company has also been releasing AI features such as AI characters on its world-leading platforms, but in January Meta said it was temporarily suspending teenager access to them as it perfected the products.

MatchPoint Times

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