Facebook owner Meta to buy AI chips from Advanced Micro Devices in deal worth up to $100 billion

Source Domain: abc7news.com

Here’s an unordered list summarizing the main points from the article:

Meta Platforms’ Partnership with AMD: Meta Platforms, the owner of Facebook, has entered into a significant agreement with Advanced Micro Devices (AMD) to purchase artificial intelligence chips, including AMD’s latest MI450 chips, to power its data centers.
Long-Term Supply Agreement: The deal with AMD involves a 6-gigawatt agreement worth potentially more than $100 billion. The first gigawatt of shipments is set to start during the second half of this year.
Competitive Landscape in AI Chips: AMD aims to keep pace with competitors like Nvidia, which has established an early lead in the artificial intelligence chip market by tailoring its GPUs for AI systems.
Meta’s AI Investments: To enhance its AI capabilities and to compete with rivals such as Google and Open AI, Meta Platforms has made substantial investments, notably $14.3 billion in the AI data company Scale in June, and has shown continued aggressive moves in AI development.
Additional AI Moves by Meta: Meta has also invested in acquiring artificial intelligence startups, including Manus, in December, to strengthen its AI offerings across its platforms.
AMD Stake Opportunity: Meta has the opportunity to acquire up to a 10% stake in AMD, contingent upon certain milestones in the agreement.
Stock Market Reaction: Shares of AMD increased by more than 9% before the market opened following the announcement of the new partnership with Meta.

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