According to The Guardian, the deal highlights Big Tech’s accelerating investment in AI, with US technology companies expected to spend around $660bn this year alone on AI-related assets. Analysts say the move reflects Meta’s broader shift toward strengthening its AI infrastructure rather than directly competing with firms such as OpenAI and Anthropic in model development.

Under the agreement, AMD will supply 6GW of AI chips, beginning with 1GW of its upcoming MI450 hardware later this year. Meta will purchase both GPUs and CPUs, including custom-designed processors tailored for high performance and energy efficiency. The arrangement covers two generations of AMD CPUs.

The partnership also underscores a growing effort among major AI companies to diversify chip suppliers beyond Nvidia, which has faced supply chain bottlenecks amid soaring demand. Meta continues to buy chips from Nvidia and is reportedly in talks with Google about using its tensor processing units (TPUs).

Meta’s infrastructure push includes a $27bn datacentre project in Louisiana and continued development of its own in-house processors. Company executives say the scale of its AI ambitions requires multiple chip vendors.

The announcement comes amid heightened market volatility driven by rapid advances in agentic AI tools and concerns about potential job displacement. Meanwhile, competitors such as Anthropic, OpenAI and Google are intensifying efforts to capture enterprise customers in the fast-evolving AI market.