AMD Partners with Meta for Major AI Infrastructure Deal
Advanced Micro Devices (NASDAQ: AMD) shares surged nearly 9% on February 24, 2023, following the announcement of a multi-year partnership with Meta Platforms (NASDAQ: META). The deal is set to deliver up to 6 gigawatts of AMD’s Instinct data center GPUs starting in the second half of 2026, aimed at supporting Meta’s AI infrastructure expansion.
According to reports, this partnership could generate approximately $60 billion in revenue for AMD over the five-year term, as the company is anticipated to supply Meta with an average of 1.2 GW of AI GPUs annually. Construction of a 1 GW AI data center may cost around $35 billion, with approximately $20 billion of that allocated for chips, suggesting AMD’s potential revenue could exceed initial estimates.
