tech
February 24, 2026
Why AMD's megadeal with Meta shows Nvidia is still the best game in town
AMD gave up equity in its deals with Meta and OpenAI. Nvidia shareholders should be glad it doesn't need to go there.
TL;DR
- AMD has entered into a strategic arrangement with Meta Platforms for AI chip sales, potentially exceeding $60 billion over several years.
- Meta has committed to purchasing 6 gigawatts of AMD's GPUs for its AI data centers.
- The AMD-Meta deal includes an option for Meta to acquire nearly 10% of AMD's stock under certain conditions, similar to a prior agreement with OpenAI.
- Analysts suggest AMD's willingness to offer equity indicates a weaker market position compared to Nvidia, which does not offer such terms.
- Nvidia has substantial cash reserves, which it uses for investments and innovation, enabling it to secure deals based on technology alone.
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