Meta and AMD's Multibillion-Dollar Deal Is All About the AI Chips

Group 1 - Meta is partnering with AMD to purchase billions of dollars' worth of AMD Instinct GPUs to enhance its AI capabilities across platforms like Instagram, Facebook, and WhatsApp [1][2] - The deal is described as "multi-year" and will provide Meta with up to 6 gigawatts of AMD GPUs, which are essential for modern AI models [2] - As part of the partnership, Meta will acquire a 10% stake in AMD, indicating a strategic collaboration between the two companies [3] Group 2 - The partnership reflects a broader trend where major tech companies are securing hardware to support their AI ambitions amid tightening supplies and rising component prices [5] - Meta's continued investment in AI signifies its competitive stance against other tech giants like OpenAI, Microsoft, and Google [6]