On February 25th local time, all three major U.S. stock indices closed higher. The Nasdaq Composite Index rose 1.04%, the S&P 500 Index gained 0.77%, and the Dow Jones Industrial Average increased by 0.76%. Most major tech stocks strengthened, with AMD performing particularly well, closing with a gain of over 8%, becoming the focus of market attention.

Meta and AMD Sign 6 GW AI Chip Deal, Total Value Potentially Reaching Hundreds of Billions of Dollars

On the news front, Meta announced it will invest heavily in purchasing AI acceleration equipment from AMD and receive warrants in return. According to information disclosed on AMD's official website on February 24th, the two parties have reached a multi-year cooperation agreement. AMD will provide a total of 6 gigawatts (GW) of computing power support for Meta's next-generation AI infrastructure, which will deploy multiple generations of AMD Instinct series GPUs at scale.

AMD CEO Lisa Su revealed that the industry valuation for such computing power deals is approximately "tens of billions of dollars per gigawatt." Based on this estimate, the total value of this agreement will exceed $60 billion and is expected to reach the scale of hundreds of billions of dollars, becoming another significant long-term order in the AI chip field.

Cooperation Expands to EPYC Processors, Meta Becomes Major Customer for New-Generation CPUs

In addition to GPU-level cooperation, the two parties will further deepen collaboration in the AMD EPYC processor domain. According to the agreement, Meta will become a major customer for the sixth-generation AMD EPYC CPU (codenamed "Venice") and the next-generation EPYC processor "Verano." Among these, "Verano" is optimized for specific workloads, aiming to provide exceptional performance per watt, further solidifying the energy efficiency foundation of Meta's data centers.

AMD Grants Meta Up to 160 Million Warrants, Linked to Shipment and Stock Price Milestones

As part of this strategic collaboration, AMD also granted Meta a performance-based warrant, allowing Meta to subscribe for up to 160 million shares of AMD common stock. The grant and vesting of this warrant will be phased: the first tranche of warrants will be granted when AMD delivers 1 GW of Instinct GPU computing power to Meta; subsequent portions will unlock gradually as Meta's procurement reaches 6 GW. Furthermore, the warrant's exercise is also tied to AMD's stock price reaching specific thresholds. Whether Meta can ultimately exercise the warrants also depends on its achievement of agreed-upon technical and commercial milestones.

AMD's CFO stated: "We expect this collaboration to drive significant revenue growth for the company for many years to come and increase non-GAAP earnings per share. This marks another important step in achieving our long-term financial goals."

Replicating the OpenAI Model, AMD Accelerates Locking in Top AI Customers

It is noteworthy that the terms of this cooperation with Meta are highly similar to the agreement AMD reached with OpenAI last October. At that time, OpenAI also committed to deploying up to 6 GW of AMD Instinct GPUs over several years, and AMD similarly granted OpenAI up to 160 million warrants, with exercise conditions also linked to chip deployment progress and stock price performance. Consecutively reaching long-term agreements with two leading AI players that feature deep "computing power + equity" binding demonstrates that AMD is accelerating its capture of market share in AI chips through flexible business models.

Meta Deepens Cooperation with NVIDIA on the Same Day, Pursuing Dual-Track AI Infrastructure Strategy

Just a week before announcing the agreement with AMD, Meta announced on February 17th that it had entered into a multi-year, cross-generational strategic partnership with NVIDIA. The collaboration will cover on-premise deployment, cloud, and AI infrastructure. Meta plans to build ultra-large-scale data centers for AI training and inference, deploy NVIDIA CPUs, millions of Blackwell and Rubin architecture GPUs at scale, and integrate NVIDIA Spectrum-X Ethernet switches into its Facebook Open Switching System platform.

By simultaneously advancing deep cooperation with both chip giants, NVIDIA and AMD, Meta is constructing a diversified and scalable AI computing power foundation, providing crucial support for its long-term artificial intelligence development strategy.