News Summary

Meta, the owner of Facebook, Instagram, and WhatsApp, has entered into a $60 billion agreement with Advanced Micro Devices (AMD) to purchase artificial intelligence (AI) chips despite concerns over the rapid expansion of the AI industry. The five-year deal includes Meta acquiring a 10% stake in AMD and will see AMD supplying 6GW of chips, starting with 1GW of their upcoming MI450 hardware. This deal follows AMD’s previous partnership with OpenAI, which boosted AMD’s market confidence. Meta also plans to continue collaborations with other chip manufacturers like Nvidia and is exploring options with Google’s tensor processors. The custom CPUs from AMD will be optimized for energy efficiency while providing robust performance. This partnership highlights the growing demand for inference hardware in AI applications.