Meta agrees to buy millions of chips from AMD
The parent company of Facebook and Instagram is undertaking a huge investment program in the generative A.I. sector to compete with Google, OpenAI and Microsoft.
Instagram logo on a device. File image.
(AFP) U.S. tech giant Meta has reached a deal to buy millions of artificial intelligence chips from chipmaker AMD, the two companies announced Tuesday.
Meta, the parent company of Facebook and Instagram, is pursuing a huge investment program in the generative A.I. sector to compete with Google, OpenAI and Microsoft.
Meta's agreement with AMD comes just days after the company led by Mark Zuckerberg announced it had struck a deal to acquire millions of processors over the next few years from AMD rival Nvidia.
The five largest U.S. A.I. vendors—Microsoft, Alphabet, Amazon, Meta and Oracle—have announced investments of more than $650 billion this year in the sector, nearly double that by 2025.
Meta lacks cloud services revenue
Unlike its A.I. competitors, Meta lacks revenue from cloud services, although, it says it benefits from this technology thanks to better performance from online advertising, its main source of business.
AMD has committed to supply Meta with up to six gigawatts in graphics processing units (GPUs), chips critical to powering artificial intelligence.
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