- It’s also another example of a circular deal in which a customer or supplier takes a stake in the other.
Zoom out: The agreement mirrors one AMD struck with OpenAI last October: The AI startup agreed to buy billions of dollars worth of chips as well as a 10% stake.
What they’re saying: “We are proud to expand our strategic partnership with Meta as they push the boundaries of AI at unprecedented scale,” AMD CEO Dr. Lisa Su said in a statement.
Zoom in: The first chip shipments will begin the second half of this year.
- A gigawatt represents enough power to electrify a small city.
- AMD stands to gain tens of billions of dollars in revenue for each gigawatt of computing power, the Wall Street Journal notes.
Follow the money: As part of the deal, Meta has received warrants that would allow it buy up to 160 million shares of AMD if certain performance targets are hit.
- Shares of AMD were up 11% in pre-market trading.
This is a developing story.