AMD to invest $1 billion in Meta’s AI stock offering

Advanced Micro Devices said on Tuesday, Oct. 27, that it will invest $1 billion in the equity offering Meta Platforms launched to pay for its AI buildout. In the same release, AMD said its Helios rackscale systems are now running at Meta. The investment puts a financial stake behind a supplier relationship that already covers Meta's processors, GPUs, networking and software.ir.amd.com

What AMD Announced

AMD said its EPYC processors power Meta's Muse AI agent. It also said its technologies provide Day-0 support for Meta models, including Muse Spark Open and Muse Glimmer. The company described the first Helios racks as "installed and being tested by Meta on the path to a broader deployment in the near future". Meta has deployed millions of EPYC chips and is a lead customer for 6th Gen EPYC CPUs. It was also an early definition customer for the Instinct MI450 architecture and plans to deploy a custom Instinct GPU built for its workloads.newsroom.amd.com+1

"With Helios now running at Meta, we are taking that partnership to a new scale in the superintelligence era," AMD CEO Lisa Su said. Meta CEO Mark Zuckerberg said AMD "has been a key partner in building out the compute that's running our frontier models". The announcement builds on a February agreement under which Meta plans to deploy up to 6 gigawatts of AMD GPUs across multiple generations. AMD shares traded higher Tuesday morning after the news.stockwatch.com+2

Meta's $95 Billion Raise

On Monday, Oct. 26, Meta said it plans to raise up to $95 billion for AI infrastructure. That includes $35 billion in underwritten public equity offerings first, followed by $60 billion through an at-the-market program. The company said Nvidia, AMD and Broadcom had shown interest in buying up to $5 billion in shares. Nvidia then committed $3 billion, so Nvidia and AMD together have pledged $4 billion. Meta later increased its Class A common-stock offering to $25 billion from $22.5 billion, priced at $625 per share.cnbc.com+2

Money Flowing Both Ways

The deal makes AMD both a seller to Meta and an investor in it. Under their earlier arrangement, Meta can earn up to 160 million AMD shares if it buys AMD chips drawing six gigawatts of power and AMD stock reaches agreed price levels. The release does not tie the $1 billion to any new chip order, and it gives no price, share count or date for the investment. Investors have raised concerns about "circular financing" as chip suppliers buy stakes in their largest customers.stocktitan.net