Meta has agreed to buy billions of dollars’ worth of customised chips from AMD, part of a multiyear AI infrastructure deal that could also result in it taking a roughly 10 per cent stake in the Nvidia rival.
The social media giant said on Tuesday it will acquire chips with a total power consumption of 6 gigawatts — enough energy to power about 5mn US households for a year — as it races to develop and deploy its AI models.
AMD also issued Meta with a performance-based warrant, giving it the option to acquire up to 160mn AMD shares in tranches at an exercise price of $0.01, as the Facebook owner buys successive orders of processors.
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