Meta Platforms (META) has entered a multi-year agreement with Advanced Micro Devices (AMD) to provide up to 6 gigawatts (GW) of GPUs for AI data centers, valued at over $100 billion. This deal includes customized CPUs and a performance-based warrant allowing Meta to acquire a 10% stake in AMD. The announcement comes shortly after Meta’s recent expansion with NVIDIA (NVDA) chips, marking a significant shift in AI infrastructure spending.
This collaboration is poised to challenge NVIDIA’s dominance in the AI sector and offers AMD a substantial validation as an AI chip provider. The strategic partnership will help Meta enhance its AI capabilities while diversifying its supply chain. AMD is expected to secure a multi-year revenue stream and may attract similar deals in the future, further solidifying its market position.
Investors may find Exchange-Traded Funds (ETFs) with significant exposure to both companies an attractive option amid the evolving AI landscape, as they offer a diversified investment approach while minimizing risks associated with individual stock volatility.
