AMD and Meta Reach AI Chip Partnership, Innovative Equity Bond a Highlight

AMD recently announced a five-year artificial intelligence chip procurement agreement with Meta, valued at $60 billion to $100 billion. Meta will purchase AMD processors with up to 6 gigawatts of computing power, with the first MI450 chip devices deployed in the second half of this year. This transaction employs an innovative equity bond model. Meta will receive warrants to purchase up to 160 million AMD shares at extremely low prices. If milestones are achieved and the share price reaches the target, Meta could ultimately hold approximately 10% of AMD's shares, becoming a core shareholder.