In a strategic partnership, Meta has joined forces with AMD, aiming to develop Advanced Micro Devices.
This significant move comes a week after Meta committed to using millions of Nvidia’s chipsets to integrate in its AI-powered projects.
Under the agreement, Meta and AMD will involve integrating up to 6 gigawatts of the company’s graphics processing units for AI data centers.
As per AMD CEO Lisa Su, the company is offering “high-performance, energy-efficient infrastructure optimized for Meta’s workloads, accelerating one of the industry’s largest AI deployments and placing AMD at the center of the global AI buildout.”
The announcement comes as a crucial development for AMD, which is still struggling to compete with Nvidia in the AI chip market, which is valued at $4.66 trillion, while AMD’s valuation is $320 billion.
Chip analyst Ben Bajarin of Creative Strategies stated, “Meta is in a unique position to control the full stack and they can use whoever’s compute they want.”
“It’s just a punctuation point on the fact that we are compute constrained, and deals will be done across the board,” Bajarin added.
As per the latest quarterly earnings of Nvidia, the AI-chip manufacturer is expected to see a growth of nearly 68% from a year earlier to $66 billion.
Meanwhile, AMD stock price reported growth for the fourth quarter of 34% to $10.27 billion.
Meta has been integrating AMD and Nvidia’s chips for years. However, the company has now stepped into in-house processors development.
Another report by The Information suggested that discussions between Meta and Google are currently underway about deploying the search company’s tensor processing units in Meta data centers in 2027.
