Advanced Micro Devices experienced a strong market reaction Tuesday morning, with shares jumping 14% following announcement of a broader strategic agreement with Meta to supply large-scale AI hardware. Under the definitive multi-year, multi-generation pact, Meta will deploy up to 6 gigawatts of AMD Instinct GPUs across its infrastructure.
The companies said shipments supporting the initial 1-gigawatt deployment are expected to start in the second half of 2026. Those systems will be powered by a custom AMD Instinct GPU built on the MI450 architecture and paired with 6th Gen AMD EPYC processors codenamed "Venice."
AMD noted the planned deployments will be implemented using the AMD Helios rack-scale architecture. Helios, which made its debut at the 2025 Open Compute Project Global Summit, was developed collaboratively by AMD and Meta through the Open Compute Project to support scalable, rack-level AI infrastructure.
Financially, the agreement includes a performance-based warrant issued to Meta for as many as 160 million shares of AMD common stock. The warrant is structured to vest in tranches tied to shipment milestones for Instinct GPUs: the first tranche vests with the initial 1-gigawatt of shipments and further tranches vest as Meta's purchases expand toward the full 6-gigawatt commitment.
Meta has previously deployed millions of AMD EPYC CPUs and significant numbers of AMD Instinct MI300 and MI350 series GPUs throughout its global infrastructure. Under the new arrangement, Meta will be a lead customer for AMD's 6th Gen EPYC processors, including "Verano," a next-generation EPYC chip designed with workload-specific optimizations.
AMD's chief financial officer, Jean Hu, said the company expects the partnership to generate substantial multi-year revenue growth and to be accretive to non-GAAP earnings per share. The statement framed the Meta deal as a major growth catalyst for AMD's data center and AI hardware business.
The combination of a large potential hardware order, milestone-linked equity considerations and a defined deployment timeline appears to have driven investor optimism. The specifics on timing, product platforms and the vesting structure of the warrant were central to the announcement and to the market response.