AMD just scored a massive win in the AI race. On February 24, 2026, AMD and Meta announced a 6-gigawatt agreement to power Meta's next generation of AI infrastructure across multiple generations of AMD Instinct GPUs. This isn't just another chip order—it's one of the biggest hardware deals in tech history, believed to be worth more than $100 billion, with each gigawatt of compute alone worth tens of billions in revenue for AMD.
The market loved it. AMD stock gained 9.82% following the news, with a peak move of +9.9% during the session. For AMD, which has been chasing Nvidia's dominance in AI chips, this deal is a game-changer. AMD remains far behind Nvidia in the AI chip market, as Nvidia controls roughly 90% of the market with a $4.66 trillion valuation, while AMD is valued at $320 billion. Meta's commitment shows that AMD is finally securing major customers for its AI hardware.
The first deployment will use a custom AMD Instinct GPU based on the MI450 architecture, with shipments supporting the first gigawatt deployment scheduled to begin in the second half of 2026. Meta will also get custom CPUs built for its specific workloads. But here's the interesting part: AMD issued Meta a performance-based warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones associated with Instinct GPU shipments are achieved, with the first tranche vesting with the initial 1-gigawatt of shipments.
That warrant could give Meta up to 10% of AMD's stock—if the company hits all its milestones and AMD's share price climbs significantly. The structure mirrors AMD's deal with OpenAI announced in late 2025, showing this model is becoming AMD's playbook for landing major AI customers. Meanwhile, Meta announced a separate multiyear agreement with Nvidia that will see the chipmaker provide Meta with millions of its Blackwell and Rubin GPUs, so Meta is intentionally diversifying its chip suppliers rather than putting all its eggs in one basket. Check out our coverage of how AI is reshaping tech stocks for more context on this rapidly evolving landscape.