AMD clinches second mega chip supply deal, this time with Meta

SAN FRANCISCO: Advanced Micro Devices said on Tuesday it has agreed to sell up to $60 billion worth of artificial intelligence chips to Meta Platforms over five years in a deal that allows the Facebook owner to purchase as much as 10% of the chip firm.

AMD shares rose more than 6% in early trading, while market leader Nvidia, set to report results on Wednesday, fell around 1%.

Surging demand for AI processors has deepened competition for Nvidia and niche players as the industry scrambles to secure scarce supply. In October, Alphabet agreed to supply Anthropic with custom chips it ‌had long reserved for in-house use ⁠in a ⁠deal worth tens of billions of dollars.