Meta, the firm behind Facebook, will procure artificial intelligence processors from AMD in an agreement potentially reaching $100 billion. Meta Platforms will obtain AI processing units from Advanced Micro Devices (AMD) and will additionally secure the option to acquire up to 10% of the semiconductor manufacturer's equity.
The AMD announcement surfaces mere days following Meta’s disclosure of a lasting alliance with Nvidia, where it will utilize millions of the corporation’s processors and other equipment for its AI data hubs. Meta intends to secure AMD’s newest processors — the MI450 — to fuel its data centers. The 6-gigawatt arrangement anticipates initial shipments of the first gigawatt within the latter portion of the ongoing year. The arrangement’s value could exceed $100 billion.
AMD endeavors to maintain pace with Nvidia in the AI realm, perceived by many as the paramount technological advancement since Apple co-creator Steve Jobs unveiled the inaugural iPhone.
Nvidia established an initial advantage by repurposing its graphics processing units (GPUs), initially crafted for gaming, to educate potent AI systems, mirroring the technology underlying ChatGPT and image generators. Demand has surged as an escalating number of individuals have commenced employing AI chatbots. Technology enterprises have been vigorously escalating their acquisitions of processors to construct and sustain such infrastructures. While the requirement for AI processors persists robustly, concerns linger regarding the magnitude of investments undertaken by entities like Meta and their aptitude to recuperate these substantial investments through prospective revenue and productivity enhancements.
For Meta, this initiative constitutes a portion of its broader endeavor to reinforce its commercial AI ventures amidst intense rivalry from Google and ChatGPT producer OpenAI. In June, the company channeled $14.3 billion into AI data enterprise Scale and enlisted its CEO, Alexander Wang, to spearhead Meta’s “superintelligence” division. In December, Meta further assimilated artificial intelligence newcomer Manus, furthering its drive to broaden AI functionalities across its platforms, notably Instagram.
AMD has afforded Meta a performance-contingent authorization to procure as many as 160 million shares of ordinary stock at a cost of $0.01 per share. The authorization will become exercisable upon the fulfillment of specified accomplishments.
Source: yahoo