Meta is joining OpenAI as one of the major tech companies to take a stake in chipmaker AMD, as part of an AI hardware buying frenzy. Meta and AMD on Tuesday announced a partnership that will involve CEO Mark Zuckerberg’s tech giant buying billions of dollars’ worth of AMD Instinct GPUs in order to fuel its ambitions to build out AI offerings across Meta platforms, including Instagram, Facebook and WhatsApp.
In a release, Meta described the deal as “multi-year,” and said the AI purchase will provide Meta with up to 6 gigawatts of AMD GPUs, “the silicon computing technology used to support modern AI models.”
According to the US Department of Energy, a single gigawatt (1 billion watts) is equivalent to nearly 2,000 large solar panels or 100 million LED bulbs.
In AMD’s version of the announcement, CEO Lisa Su said, “We are proud to expand our strategic partnership with Meta as they push the boundaries of AI at unprecedented scale.” As part of the deal, Meta will take a 10% stake in AMD.
AMD, based in Santa Clara, California, previously signed a deal with ChatGPT-maker OpenAI that it announced last October, which is similar to the Meta deal and also gives its AI rival 10% ownership of AMD.
(Disclosure: Ziff Davis, CNET’s parent company, in 2025 filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)
What does this mean for the rest of us?
AMD’s two megadeals may not have an immediate impact on people who use Meta’s social networking and communications apps, or even on those who buy AMD’s products, including desktop processors and graphics cards.
But it signals that large companies making huge bets on the future of AI are doing what they can to secure the hardware they need as supplies tighten and prices rise for components such as RAM. Some of those constraints aren’t expected to end anytime soon, and shoppers could begin to see prices rise even more than they already have for computers, smartphones, vehicles and other products that heavily rely on computing components like these.
It is also a sign that Meta’s ambitions for AI are not slowing down as it continues to compete with companies including OpenAI, Microsoft and Google to develop AI products and tools.
Also a factor: Meta’s push into wearables
Another reason AMD may want access to AI chips goes beyond its own data centers and online platforms: Meta has increasingly been focused on wearables such as its Oakley Meta AI Glasses and other potential new portable products.
In addition to what AMD’s GPUs can offer Meta for AI infrastructure power, AMD may also be part of its wearable future.
“With AI models requiring unprecedented processing power to process real-time data and information, Meta is focused on securing the supply chain necessary for its wearable devices,” said Michael J. Wolf, founder and CEO of the consulting firm Activate.
Wolf believes that the deals Meta and OpenAI have signed won’t be the last time a major AI-focused company locks down a supply of semiconductors.
“As consumer hardware transitions from smartphones to smart glasses, we will absolutely see more of these mega-deals,” Wolf said.
