Meta intends to acquire potentially as much as $100 billion in AMD chips, sufficient to power nearly six gigawatts of data center energy demand, the companies revealed on Tuesday.

As part of the long-term agreement, AMD has granted Meta a performance-linked warrant for up to 160 million shares of AMD common stock — equivalent to around 10% of the company — at a price of $0.01 each, designed to vest in accordance with specified milestones. The complete stock award is contingent upon AMD’s share value, which must reach $600 for Meta to obtain its final portion, according to The Wall Street Journal. AMD’s stock price closed at $196.60 on Monday.

In line with the agreement, Meta will acquire AMD’s MI540 series GPUs and its most recent generation of CPUs. CPUs are increasingly recognized as a key component of the AI inference compute stack due to their efficiency, scalability, and the fact that they do not solely bind companies to Nvidia.

“The CPU market is truly booming,” AMD CEO Lisa Su remarked on Tuesday morning during a briefing for investors. “Demand is substantial. It continues to expand, driven by the deployments of AI infrastructure as inferencing intensifies and agentic AI develops, and our portfolio is exceptionally well-positioned.”

AMD has been progressively making headway as AI companies seek to lessen their dependency on Nvidia, the long-time frontrunner in AI chips that has commanded a premium for its position. Last October, AMD and OpenAI forged a similar agreement that involved equity in exchange for a chip purchase contract.

Meta CEO Mark Zuckerberg stated that the collaboration with AMD is “a crucial advancement” as it diversifies its computing capabilities and progresses toward “personal superintelligence.” Zuckerberg has characterized personal superintelligence as AI systems intended to profoundly understand and enhance individuals’ daily lives.

Meta has committed to investing a minimum of $600 billion in U.S. data centers and AI infrastructure over the upcoming years, including an estimated capital expenditure of $135 billion in 2026. Meta recently announced plans for a $10 billion gas-powered data center campus in Indiana aimed at providing 1 gigawatt of compute power.

The AMD collaboration follows a recent agreement in which Meta expanded its data centers with millions of Nvidia’s latest CPUs and GPUs. The company formerly known as Facebook is also developing its in-house chips but has reportedly encountered delays.

This article has been revised with additional information from AMD CEO Lisa Su.