• by Colin Kirkland , 6 hours ago

Weeks after expanding its partnership with chip manufacturer Nvidia, Meta has announced plans to spend billions more dollars on chips from Nvidia competitor and American semiconductor company Advanced Micro Devices (AMD) in order to power new data centers and develop personal superintelligence.

Per the deal, Meta is expected to purchase a volume of AMD's MI540 series of GPUs and its latest generation of CPUs that equates to six gigawatts of of electricity -- providing more than enough energy to power Meta's Louisiana-based Hyperion data center.

Meta has also been issued a performance-based warrant by AMD for as many as 160 million shares of its common stock for $0.01 each.

According to The Wall Street Journal, AMD has issued Meta a performance-based warrant for as many as 160 million shares of its common stock for $0.01 each, or roughly 10% of the company.

In total, Meta's investment in AMD chips could cost up to $100 billion.

With growing desire for CPUs, AMD is competing directly with Nvidia -- currently the most valuable company in the world -- striking deals with AI-centric tech giants including OpenAI, which signed a similar six-gigawatt deal with AMD in October.

In response to the deal, AMD CEO Lisa Su said Meta's new chip investment will likely put the tech giant “at the center of the global A.I. build out.”

Meta has pledged to “build tens of gigawatts this decade,” committing to spending over $600 billion in the U.S. throughout 2028 and about $135 billion on AI in 2026.

Striving toward the development of what Meta is calling personal superintelligence -- AI that exceeds human cognitive abilities -- the company is accumulating GPUs and CPUs from major chip manufacturers, including AMD, Arm, and Nvidia.

Recently, Meta forged a multiyear partnership with Nvidia to use the company’s latest AI chips to help fulfill the planned development of 30 data centers.