Core Insights - Meta Platforms has signed a multi-year deal with Advanced Micro Devices valued at over $100 billion to deploy up to 6 gigawatts of GPUs for AI data centers, which includes customized CPUs and a performance-based warrant for Meta to acquire a 10% stake in AMD [1][11]. Group 1: Impact on AI Industry - The agreement signifies a shift towards a multi-vendor ecosystem in the AI industry, breaking Nvidia's near-monopoly and validating AMD as a viable alternative [5]. - This deal is expected to accelerate growth across the broader AI industry, driving innovation and easing supply bottlenecks [4][5]. Group 2: Benefits for AMD - The deal provides AMD with a multi-year revenue stream and solidifies its position as a prime AI chip provider, enhancing its credibility against Nvidia [6]. - The performance-based warrant allows Meta to acquire up to 160 million shares of AMD, aligning the long-term interests of both companies [6]. Group 3: Benefits for Meta - By securing a large volume of AMD's GPUs and custom CPUs, Meta diversifies its supply chain and gains hardware tailored for its specific workloads, which is crucial for training advanced AI models [7]. Group 4: Investment Opportunities - The recent developments create a favorable environment for investing in ETFs that have high exposure to Meta and AMD, as they provide a diversified approach to capitalize on the AI sector's growth [2][9]. - Suggested ETFs include Global X Artificial Intelligence & Technology ETF (AIQ), iShares U.S. Technology ETF (IYW), Invesco QQQ (QQQ), and Invesco AI and Next Gen Software ETF (IGPT), each with significant holdings in Meta and AMD [12][14][16][18].

Advanced Micro Devices said Tuesday it has agreed to sell up to $60 billion worth of artificial intelligence chips to Meta Platforms over five years in a deal that allows the Facebook owner to purchase as much as 10% of the chip firm.The agreement could potentially be worth more than $100 billion. AMD shares rose more than 7%, while market leader Nvidia, set to report results on Wednesday, were little changed.Surging demand for AI processors has deepened competition for Nvidia and niche players as the indus ...