{"id":786070,"date":"2026-02-24T15:17:12","date_gmt":"2026-02-24T15:17:12","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/786070\/"},"modified":"2026-02-24T15:17:12","modified_gmt":"2026-02-24T15:17:12","slug":"meta-agrees-60bn-deal-with-chipmaker-amd-despite-ai-bubble-fears-meta","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/786070\/","title":{"rendered":"Meta agrees $60bn deal with chipmaker AMD despite AI bubble fears | Meta"},"content":{"rendered":"<p class=\"dcr-130mj7b\">The owner of Facebook has agreed to buy $60bn (\u00a344.5bn) of artificial intelligence chips from the US semiconductor company Advanced Micro Devices despite <a href=\"https:\/\/www.theguardian.com\/technology\/2026\/jan\/17\/why-trillions-dollars-risk-no-guarantee-ai-reward\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">fears over the vast sums being spent on the AI industry<\/a>.<\/p>\n<p class=\"dcr-130mj7b\">Meta, which also owns Instagram and WhatsApp, has clinched the five-year deal in which it will also buy 10% of the chip company.<\/p>\n<p class=\"dcr-130mj7b\">AMD signed a similar pact with OpenAI last year, which was hailed as a vote of confidence in its chips and software, significantly boosting its stock price.<\/p>\n<p class=\"dcr-130mj7b\">A recent series of chip supply agreements underscores the AI industry\u2019s appetite for processors. Meta has separately struck a deal with AMD\u2019s larger rival Nvidia to buy millions of AI chips.<\/p>\n<p class=\"dcr-130mj7b\">AMD would supply 6GW worth of chips to Meta, starting with 1GW of the company\u2019s forthcoming MI450 hardware in the second half of this year, said AMD\u2019s chief executive, Lisa Su.<\/p>\n<p class=\"dcr-130mj7b\">In addition to AMD\u2019s flagship graphics chips (GPUs), Meta also plans to buy central processors (CPUs), including a variant that will be customised for the social media platform\u2019s needs.<\/p>\n<p class=\"dcr-130mj7b\">The custom CPU would be tuned to deliver powerful performance while keeping energy consumption as low as possible, Su said. The deal will include two generations of AMD\u2019s CPUs.<\/p>\n<p class=\"dcr-130mj7b\">\u201cSo no question Mark is very, very ambitious in what he wants to accomplish, and we want to use every aspect of our technology to really help Meta to accomplish that,\u201d Su said, referring to Meta\u2019s chief executive, Mark Zuckerberg. \u201cMeta is making a big bet on AMD.\u201d<\/p>\n<p class=\"dcr-130mj7b\">Meta contributed to the MI450 design, which is optimised for a computing process known as inference \u2013 when a chatbot such as OpenAI\u2019s ChatGPT responds to a user\u2019s queries.<\/p>\n<p class=\"dcr-130mj7b\">Industry analysts expect the market for inference hardware to dwarf the size of the market for the equipment needed to train large AI models.<\/p>\n<p class=\"dcr-130mj7b\">Meta planned to continue to buy chips from other vendors and develop its in-house processors at the same time, said Santosh Janardhan, the company\u2019s infrastructure head. Meta has been in discussions with Google about using the company\u2019s tensor processors (TPUs) for AI work, Reuters reported.<\/p>\n<p class=\"dcr-130mj7b\">The scale at which Meta was building datacentres and infrastructure required multiple chip vendors and approaches, Janardhan said.<\/p>\n<p class=\"dcr-130mj7b\">\u201cAll of the chipmakers end up having sort of a seat at the table,\u201d Janardhan added.<\/p>\n","protected":false},"excerpt":{"rendered":"The owner of Facebook has agreed to buy $60bn (\u00a344.5bn) of artificial intelligence chips from the US semiconductor&hellip;\n","protected":false},"author":2,"featured_media":786071,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[3163],"tags":[323,1942,53,16,15],"class_list":["post-786070","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-technology","tag-uk","tag-united-kingdom"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116126276041334722","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/786070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=786070"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/786070\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/786071"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=786070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=786070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=786070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}