Meta could end up owning 10% of AMD in new chip deal

Meta has entered into a multi-billion dollar chip deal with AMD that could result in the social media giant owning a 10 percent stake in the chipmaker. The deal involves AMD supplying Meta with 6 gigawatts of customized chips to support its AI initiatives. AMD's CEO, Lisa Su, highlighted the significant value of each gigawatt of compute under the deal. This transaction mirrors a similar arrangement AMD made with OpenAI in October, where the AI company was offered a 10 percent stake in AMD over time. The deal also signifies Meta's strategy to diversify its chip suppliers, moving away from market leader Nvidia.