Source: Bloomberg
Summary
Meta Platforms Inc. has agreed to purchase billions of dollars in AI chips from Advanced Micro Devices Inc. (AMD) in a multiyear deal. The agreement includes a warrant for 160 million shares. This move is part of Meta’s effort to diversify its suppliers beyond Nvidia Corp. and expand its data center capacity, according to the report.
Our Reading
The announcement sounds ambitious.
Meta is buying a lot of AMD AI chips, because that’s what you do when you want to sound like you’re doing something new. This “multiyear deal” is just a fancy way of saying “we’re committed to this for a bit.” The 160 million-share warrant is just a nice bonus. Let’s be real, this is just another iteration of “we’re going to use more computers to do more things.”
Author: Evan Null
