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Meta Platforms has signed a deal with Advanced Micro Devices (AMD) to purchase up to $60 billion in AI chips over five years, including a performance-based warrant for 160 million shares. This investment enables Meta to secure a diversified AI supply chain while addressing supply chain risks associated with Nvidia.

AMD will supply 6 gigawatts of chips, starting with 1 gigawatt of MI450 hardware. This agreement supports Meta's broader strategy to become a major provider of AI infrastructure and aligns with its ongoing construction of a $27 billion data center campus in Louisiana. Analysts note that while AMD has a smaller market share than Nvidia, its chips offer comparable performance and advantages, indicating a shift in the AI landscape.