Meta Announces Major Chips-for-Stock Deal With AMD

Meta said on Tuesday that it would purchase billions of dollars worth of semiconductors from Advanced Micro Devices to develop artificial intelligence technologies and power new data centers.

As part of the multiyear deal, Meta is buying a volume of chips equivalent to up to six gigawatts of electricity, enough to power more than five million homes. The social media giant can also take a financial stake of up to 10 percent of the chip developer, the two companies announced.

AMD's chief executive, Lisa Su, is using creative deal making to elbow her company's way into an A.I. chips market that has been dominated by Nvidia, the world's most valuable company. In October, AMD struck a similar deal with OpenAI to provide chips and a financial stake in exchange for an agreement to buy its chips.