Meta's AI Chip Leap: A Game-Changing Tech Move

Meta Platforms has struck a landmark deal with AMD to acquire advanced AI chips, potentially taking a significant stake in the chipmaker. This partnership, alongside Meta's recent collaboration with Nvidia, showcases its dedication to AI innovation despite concerns over investment returns.

Tech giant Meta Platforms has inked a strategic agreement with Advanced Micro Devices (AMD) to procure state-of-the-art AI chips and the option to buy up to a 10% stake in the company. Meta's acquisition of AMD's MI450 chips aims to bolster its data centers' capabilities significantly.

This substantial deal, valued at over USD 100 billion, aligns with Meta's ambitions to remain at the forefront of AI technology. A 6-gigawatt agreement will see the first gigawatt deployment starting in the latter half of this year, with performance-based warrants for up to 160 million AMD shares part of the package.

The announcement swiftly followed Meta's partnership with Nvidia, highlighting a fierce competition in the AI chip market. As demand for AI chatbots and systems grows, tech companies are racing to secure advanced hardware, despite uncertainties surrounding potential long-term profits.

(With inputs from agencies.)