Meta could end up owning 10% of AMD in new chip deal (arstechnica.com)

Meta has announced a significant multi-billion dollar chip deal with AMD, which could grant the social media giant up to a 10 percent stake in the semiconductor company. Under this agreement, Meta will purchase customized chips with a total processing capacity of 6 gigawatts, a strategic move that underscores its ambitions to enhance its AI models. Following the announcement, AMD's shares surged by 14 percent in pre-market trading, reflecting investor enthusiasm for the potential of this partnership. This deal is noteworthy for the AI/ML community as it highlights a growing trend among tech giants to diversify their chip sources, moving away from reliance on NVIDIA, the current market leader. AMD's CEO, Lisa Su, highlighted the financial implications, noting that each gigawatt of compute represents "double-digit billions." Additionally, Meta has been issued a performance-based warrant allowing it to acquire up to 160 million AMD shares over time at a low exercise price, further intertwining the financial fates of both companies. As Meta aims to scale its AI capabilities, this partnership positions AMD as a key player in its technological evolution.