AMD (AMD.US) catches up with NVIDIA Corporation (NVDA.US) in a key battle: Meta (META.US) lands a 6-gigawatt computing power order and announces an investment to strengthen the alliance.

Meta Platforms (META.US) recently announced that it will deploy data center equipment with a computing power scale of 6 gigawatts, based on AMD (AMD.US) processors. This significant deal marks a key victory for AMD in its quest to catch up with NVIDIA Corporation (NVDA.US). According to the agreement, Meta will purchase AMD chips and server equipment designed specifically for AI models for five years starting from the second half of 2026. AMD CEO Lisa Su revealed that the transaction value per gigawatt capacity will reach "billions of dollars". As part of the collaboration terms, Meta will receive warrants to purchase 160 million shares of AMD stock in phases. These warrants will gradually become effective when project milestones are reached and when AMD stock prices hit certain benchmarks, making Meta a significant shareholder in AMD. This deal is the latest move in Meta's continued expansion. CEO Mark Zuckerberg has prioritized AI as a strategic focus, committing to investing billions of dollars in "radical build-out" of computing infrastructure. Last month, Zuckerberg officially launched the Meta Compute Computing Plan, aiming to "build tens of gigawatts of compute in this decade and eventually expand to hundreds of gigawatts," in order to establish a strategic advantage over competitors. As a reference, 1 gigawatt of compute is roughly equivalent to the power output of a nuclear power plant and can meet the electricity needs of about 700,000 households. This partnership also signifies AMD's direct competition with industry leader NVIDIA Corporation - just last week, NVIDIA Corporation announced a collaboration with Meta. This also indicates that, despite concerns from some investors about an AI investment bubble, global spending on AI hardware continues to accelerate. For Meta, the collaboration with AMD not only provides custom-designed chip components but also deep involvement in the direction of next-generation semiconductors. Santosh Janardhan, Meta's Global Infrastructure Lead, stated, "Our goals are very ambitious." Meta will continue to advance its in-house AI chips while also purchasing products from NVIDIA Corporation. The three types of chips will support different AI computing tasks. "At our current scale, each of the three solutions (in-house, AMD, NVIDIA Corporation) has its place," Janardhan said in an interview. Janardhan, who reports directly to Zuckerberg, also revealed that the company has not yet determined which data centers will be equipped with these new AMD chips. These processors are primarily used for AI inference, the operational application of trained models. Lisa Su stated that Meta has been deeply involved in AMD chip design and will also receive custom versions of the MI450 accelerator card and its successor products. Janardhan noted that the ability to define chip requirements more precisely is a key reason why Meta chose to have a deep partnership with AMD. "Our strategy is to accelerate fully and scale up," said Lisa Su. "The cooperation with Meta has always been smooth, and this agreement will take our relationship to new heights." Currently, Meta is AMD's second-largest customer and will play a more critical role in AMD's growth strategy in the future. AMD achieved a revenue of $34.6 billion last year, and Wall Street predicts a 34% increase in revenue this year. Even with just an additional $10 billion in revenue, AMD's pace of catching up with NVIDIA Corporation will significantly accelerate. However, despite the high growth performance, AMD has recently faced investor skepticism: the market is concerned that the speed of expansion of AI concept stocks may not support the current valuation. After a 77% surge in AMD's stock price in 2025, it has fallen by 8.2% this year. But Meta's investment clearly indicates a bet that AMD's stock price is still in the early stages of long-term growth. The conditions for some warrants to become effective include a stock price reaching $600, while AMD's closing price on Monday was only $196.60.