Meta Bets Billions on AMD Chips in AI Arms Race

In a move that underscores the fierce competition for artificial intelligence hardware, Meta announced a multi-billion dollar partnership with chipmaker AMD on Tuesday. The agreement commits Meta to purchasing vast quantities of AMD’s Instinct graphics processors over several years to power its AI development across Facebook, Instagram, and WhatsApp.

The scale is monumental. Meta stated the deal will supply it with computing capacity equivalent to six gigawatts of AMD silicon. For perspective, federal energy data shows one gigawatt could power roughly 100 million LED light bulbs. This hardware is the engine for the advanced AI models Meta is racing to build.

AMD CEO Lisa Su called it an expansion of the companies’ strategic partnership as Meta pursues AI “at unprecedented scale.” As part of the arrangement, Meta will acquire a 10% ownership stake in AMD. This mirrors a similar deal AMD struck with OpenAI last fall, which also granted the ChatGPT maker a 10% stake.

For consumers, the immediate effect may be subtle. But these back-to-back megadeals reveal a stark reality: the world’s largest tech firms are locking down critical AI components as global supplies grow tight. This scarcity, particularly for high-performance memory, is driving up costs and could lead to higher prices for everything from smartphones to vehicles that depend on similar technology.

The investment is a clear signal that Meta’s AI ambitions are accelerating, not receding. Even as it navigates other challenges, the social media giant is spending heavily to keep pace with rivals like OpenAI, Microsoft, and Google in defining the next generation of artificial intelligence.