Meta Platforms announced on Tuesday, February 18, 2026, a major multiyear partnership with Advanced Micro Devices (AMD) under which Meta will purchase billions of dollars worth of AMD semiconductors to fuel its artificial intelligence infrastructure and new data centers.
The deal described as one of the largest custom AI chip agreements in recent years includes an option for Meta to acquire up to 10% equity stake in AMD, giving the social media giant a direct financial interest in the chipmaker’s success.
Key Terms of the Agreement
Meta will buy AMD chips equivalent to up to six gigawatts of electricity consumption — enough to power more than five million homes.
AMD will design and manufacture custom AI accelerators tailored to Meta’s specifications.
First shipments are scheduled to begin in the second half of 2026.
The partnership aims to help Meta diversify its AI hardware supply chain and reduce long-term dependence on a single vendor.
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AMD CEO Lisa Su hailed the agreement as a landmark move: “This partnership places AMD at the center of the global AI build-out. Meta’s scale and ambition will accelerate our AI roadmap and validate our full-stack approach to AI infrastructure.”
The deal comes as Meta continues to aggressively expand its AI capabilities, including large-scale language models and generative AI tools across Facebook, Instagram, WhatsApp and its metaverse initiatives. Last week alone, Meta confirmed a separate multibillion-dollar purchase of millions of Nvidia chips.
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Nvidia currently holds more than 90% market share in high-performance AI accelerators, charging premium prices that have driven major customers like Meta and OpenAI to seek alternatives. AMD has invested heavily in redesigning its Instinct MI series accelerators and supercomputing platforms to close the performance gap.
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Analyst Patrick Moorhead of Moor Insights & Strategy commented: “Nobody thought AMD was a serious contender in this space a few years ago. This deal shows it’s not a one-hit wonder AMD now has a credible strategy and real momentum.”.
The Meta-AMD partnership is the latest in a series of creative deal structures employed by AMD CEO Lisa Su, following a similar chips-for-equity agreement with OpenAI in October 2025.
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Meta emphasized that the AMD collaboration is part of a deliberate strategy to diversify its AI data center infrastructure while continuing to be a major Nvidia customer.
By Ogungbayi Beedee Adeyemi
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