Watt’s next for Meta?

Today, the Facebook parent struck a multiyear agreement with Advanced Micro Devices to install up to 6 gigawatts of AI GPUs and CPUs across its data centers. The deal also includes a warrant allowing Meta to purchase 160 million AMD shares—roughly 10% of the company. AMD rose 8.77% following the announcement.

It’s the latest escalation in Meta’s already aggressive AI buildout. The company plans to spend as much as $135 billion in capital expenditures this year while targeting tens of gigawatts of additional capacity. In total, it aims to build 30 data centers, 26 of them in the US.

AMD vs. Kingvidia

If you’re thinking: is Meta cheating on Nvidia? The answer is—not exactly. Last week, Meta expanded its commitment to purchase millions of Nvidia processors to power its AI infrastructure. Nvidia was already one of its largest suppliers, with Meta spending roughly $19 billion on the chipmaker’s products last fiscal year.

Now, Meta is adding AMD to the mix, not to replace Nvidia, but to diversify its supply. Relying on a single vendor is a risk few hyperscalers can afford (Meta’s even trying to produce its own chips, but has hit some snags).

Still, Nvidia’s lead remains substantial: The company, valued at about $4.66 trillion, commands roughly 90% of the AI chip market. AMD, by comparison, has a market cap near $320 billion. This move from Meta doesn’t anoint a new winner. Meta’s just making sure it has enough chips—from anyone who can deliver them.

What now? The timing matters. Recent AI advances have rattled parts of the market (say Citrini report five times fast), with investors questioning how much disruption could hit software, finance, and other white-collar industries. But while markets debate the fallout, the hyperscalers aren’t hesitating. Meta’s deal with AMD—coming just days after expanding its Nvidia orders—underscores that the biggest players are still committing tens of billions to AI infrastructure. Whatever disruption AI may bring, the companies building it are doubling down.—SY