Shares of AMD climbed more than 10% in premarket trading on Tuesday after the company announced a multiyear deal with Meta to advance its AI development, according to Yahoo Finance data.
Under the agreement valued by analysts at approximately $100 billion, AMD will deploy up to 6GW of Instinct GPUs for AI workloads and modern AI model training and inference, as noted by the companies.
In addition, AMD’s technology will be deployed in the Helios rack-scale architecture, supporting large-scale, energy-efficient AI computing.
The two companies will collaborate on vertical integration across silicon, systems, and software, ensuring hardware and software roadmaps are aligned for optimized performance.
The deal will also see Meta receive custom chips built on AMD’s MI450 architecture, with initial shipments of one gigawatt slated to begin in the second half of this year.
Meta CEO Mark Zuckerberg stated that the company’s ongoing work with AMD will help support future AI development and remains an important part of the company’s strategy to strengthen and diversify its computing resources.
AMD has granted Meta a warrant for up to 160 million shares, exercisable at $0.01 each, contingent on meeting GPU delivery targets, technical benchmarks, and certain stock-price milestones.
Meta has already integrated millions of AMD EPYC processors and sizable quantities of MI300 and MI350 GPUs into its global infrastructure. The new agreement builds on joint development work through the Open Compute Project.
Source: https://cryptobriefing.com/amd-meta-ai-infrastructure/
