"Reduce Reliance On Nvidia"... AMD Signs $60 Billion AI Chip Supply Deal With Meta

Reducing Reliance on Nvidia and Diversifying Supply

AMD logo. Reuters Yonhap News

U.S. semiconductor company AMD has signed an artificial intelligence (AI) chip supply contract worth up to 60 billion dollars (about 86.7 trillion won) with Meta, the parent company of Facebook.

According to Reuters and other foreign media on the 24th (local time), AMD has agreed to supply AI chips to Meta for the next five years. The deal includes an option that allows Meta to acquire up to a 10% stake in AMD.

AMD Chief Executive Officer (CEO) Lisa Su said of the deal, "One gigawatt (GW) of computing power is worth billions of dollars," adding, "In a sense, Meta is making a major investment in AMD, and if AMD shareholders perform well, it gives Meta the opportunity to share in that benefit."

The Financial Times (FT) reported that the market views this transaction as a sign that big tech companies are trying to reduce their dependence on market leader Nvidia and diversify their sources of supply.

Meta plans to almost double its AI infrastructure investment this year to 135 billion dollars. Under the deal, AMD will produce a customized version of its MI450 AI chip for Meta.

This content was produced with the assistance of AI translation services.