AMD and Meta Platforms sign a 1.44 quadrillion won AI chip contract... stock price rises 8%

AMD stock price rises 8% thanks to a large-scale chip supply contract with Meta Platforms. The contract involves the supply of AI chips valued at over $100 billion (approximately 144 trillion Korean won). Meta has been granted the right to purchase up to 10% of AMD shares, and based on the project’s results, received warrants to buy up to 160 million AMD shares at $0.01 per share.

Meta plans to build data centers based on AMD’s upcoming MI450 graphics cards, using a new design called “Helios.” The MI450 features 432GB of high-speed HBM4 memory, with data transfer speeds of up to 19.6 terabits per second. AMD will manufacture these chips using TSMC’s 2-nanometer process.

Additionally, Meta plans to introduce two new AMD CPUs—Venice and Verano. These chips aim to leverage TSMC’s process technology to improve energy efficiency. Meta intends to purchase 6 gigawatts of hardware from AMD as initially planned, with final contract terms stating that if AMD’s stock price exceeds $600, additional shares will be granted.

Experts expect this contract will support AMD’s long-term growth. AMD CFO Jean Hu mentioned that this collaboration will drive revenue growth over the coming years. This announcement follows a similar deal with AMD’s other partner, OpenAI, which also plans to buy 6 gigawatts of AI processors and acquire some AMD shares.

Meanwhile, Meta is collaborating with multiple suppliers to expand its data centers and has signed contracts to purchase millions of graphics cards from NVIDIA. Meta expects capital expenditures to reach $135 billion (about 194.4 trillion Korean won) this year, an increase of over 70% compared to last year.