Advanced Micro Devices (AMD) stock surged over 10% in premarket trading on Tuesday, February 24, 2026, following the announcement of a massive, multi-year agreement to supply artificial intelligence chips to Meta Platforms. The deal, valued at up to $60 billion over five years, represents a pivotal moment for AMD's ambitions in the AI compute market.
The definitive partnership is structured as a "multi-year, multi-generation" collaboration to deploy up to 6 gigawatts of AMD Instinct GPUs across Meta's next-generation AI infrastructure. The first deployment will utilize a custom AMD Instinct GPU based on the MI450 architecture, with shipments for the initial gigawatt scheduled to begin in the second half of 2026. The build also includes AMD's 6th-gen EPYC "Venice" CPUs and ROCm software on the AMD Helios rack-scale architecture.
A notable and unusual feature of the deal is an equity sweetener. AMD issued Meta a performance-based warrant for up to 160 million AMD shares, which vests as Meta's purchases scale from 1 to 6 gigawatts. The warrant has an exercise price of $0.01 per share and could allow Meta to acquire up to a 10% stake in AMD, with vesting linked to stock-price targets up to $600 and technical milestones.
AMD CEO Lisa Su stated the partnership "places AMD at the center of the global AI buildout," while Meta CEO Mark Zuckerberg emphasized it as "an important step for Meta as we diversify our compute." AMD CFO Jean Hu projected the deal would drive "substantial multi-year revenue growth" and be accretive to non-GAAP earnings per share.
This agreement follows a similar 6-gigawatt deal with OpenAI announced in October 2025, which also included a share warrant, suggesting a template for AMD's high-stakes AI partnerships. Analysts, such as Barclays' Tom O'Malley, have described these structures as mutually beneficial and designed to drive stock performance. The news comes alongside Meta's continued reliance on Nvidia, with whom it also has a multi-year supply agreement, highlighting the social media giant's strategy to secure capacity from multiple suppliers.
