Meta has signed a major long-term agreement with semiconductor firm AMD to supply advanced artificial intelligence (AI) chips for its growing data-centre operations, marking a significant shift in the social media giant’s hardware strategy. The deal is expected to reduce Meta’s heavy dependence on Nvidia, currently the dominant supplier of AI processors.
Under the partnership, AMD will provide its latest AI accelerators and supporting infrastructure, which will be used to train and run large-scale AI models across Meta’s platforms, including Facebook, Instagram and WhatsApp. The move comes as the company rapidly expands its AI capabilities for content recommendations, advertising, generative AI tools and its metaverse projects.
Meta has been investing billions of dollars in AI infrastructure, and chip costs have become one of its biggest expenses. By diversifying its suppliers, the company aims to improve efficiency and gain stronger bargaining power in a market where demand for high-performance AI hardware has surged.
For AMD, the agreement represents a major opportunity to challenge Nvidia’s dominance in the fast-growing AI chip sector. The company has been positioning its latest processors as a competitive alternative, focusing on performance, energy efficiency and open software ecosystems that allow customers greater flexibility.
The announcement comes at a time when investors are closely watching whether the massive spending on AI infrastructure will translate into long-term revenue growth.
The deal is expected to roll out over several years, with AMD’s chips gradually integrated into Meta’s global data-centre network. Both companies said the partnership would help accelerate innovation and support the next generation of AI-driven services.
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