Meta's New Strategy to Break Free from Nvidia's Shadow

The competition amongst global artificial intelligence (AI) chip vendors is intensifying. Just days after expanding a massive contract with Nvidia, Meta has now announced a strategic partnership with its major competitor, Advanced Micro Devices (AMD).

Meta is committed to deploying extraordinary capital to roll out custom GPU (Graphics Processing Unit) chip infrastructure manufactured by AMD, with power capacity reaching 6 gigawatt (GW).

AMD Chief Executive Officer Lisa Su explicitly described the deal, valued at over $100 billion USD (approximately 1,600 trillion rupiah), as one of the most transformative agreements in the company’s history.

For Meta, this diversification of hardware represents an essential step to prevent the company from becoming entirely dependent on a single vendor amidst the AI trend.

A Meta representative confirmed that, given the massive computing scale they are building, there is always room for internal custom chip architecture, chips from Nvidia, alongside chips from AMD to handle different types of reasoning workloads.

Delivery of chips for the first 1 gigawatt capacity is scheduled to begin rolling out in the second half of 2026. Meta will deploy custom accelerator chips built on the AMD Instinct MI450 platform.

Significantly, this strategic partnership extends beyond mere hardware transactions. To secure long-term collaboration, AMD has included performance warrant options that give Meta the right to purchase up to 160 million AMD shares.

However, these options are exercised in phases with strict conditions and benchmarks. Meta can only execute these shares if they successfully achieve chip infrastructure adoption targets of up to 6 gigawatt capacity, and if AMD’s share valuation successfully breaches the 600 US dollar per share threshold.

Through this vendor diversification strategy, Meta is working hard to secure its position in the computing future without being constrained by a single chip manufacturer brand.