Washington, United States: American tech giant Meta has reached an agreement to purchase millions of chips from processor manufacturer AMD, in which it could become a shareholder, the two companies announced Tuesday.
AMD has committed to supplying Meta with up to 6 gigawatts worth of graphics processing units (GPUs), chips fundamental to powering artificial intelligence. AMD's stock jumped 12 percent in pre-market trading on Wall Street.
In addition, AMD issued Meta, which owns platforms including Facebook and Instagram, with a warrant -- a financial derivative product that can be converted to shares, in this case 160 million of them.
"We're excited to form a long-term partnership with AMD to deploy efficient inference compute and deliver personal superintelligence," said Mark Zuckerberg, founder and CEO of Meta. "I expect AMD to be an important partner for many years to come."
No dollar figure was provided in the joint communique. The transactions represent a "double-digit" amount in billions of dollars, AMD CEO Lisa Su told analysts, according to Bloomberg.
