AMD and Meta strike $100B AI deal that includes 10% stock deal (www.tomshardware.com)

AMD and Meta have forged a transformative partnership valued at over $100 billion, whereby AMD will supply up to 6 gigawatts of computing power to support Meta's AI initiatives. As part of this collaboration, AMD will deliver its Helios rack-scale architecture, leveraging custom MI450 GPUs and EPYC CPUs, with the first deployment anticipated in 2026. This agreement also includes a performance-based incentive for Meta to acquire up to 160 million shares of AMD stock, equivalent to about 10% of the company, contingent upon achieving specific milestones related to GPU shipments. This deal is significant for the AI/ML community as it highlights the escalating demand for computational power to accelerate AI model deployment. It positions Meta as a critical customer for AMD's next-generation EPYC processors and establishes a competitive landscape for AI infrastructure, mirroring previous agreements like the one AMD made with OpenAI. The ambitious goals tied to stock performance introduce a high-stakes dynamic, with Meta potentially securing a substantial stake in AMD should the firm’s share price rise to $600. This partnership not only underscores the importance of robust computing resources for AI development but could also reshape financial strategies within the tech industry as companies align around AI-related investments.