Skip to content

AMD’s shares rise by more than 6% after announcing expanded GPU partnership with Meta

AMD and Meta expand partnership for supply of GPUs
SHARE THIS ARTICLE

Tech firms AMD and Meta have expanded an existing partnership, which will see GPUs supplied to Meta to help support its workloads, as per an official announcement on Tuesday. 

The partnership is a multi-year agreement in which AMD will specifically supply its AMD Instinct GPUs and a 6th-generation specialized AMD CPU to power Meta’s infrastructure, both of which were developed using a rack infrastructure called Helios jointly made by both companies. 

The official announcement said the total capacity of GPUs and hardware for Meta’s applications is estimated at 6 GW (Gigawatts)

At the time of writing, Meta’s shares were trading at $636.28.

“This is an important step for Meta as we diversify our compute. I expect AMD to be an important partner for many years to come,” said Meta’s CEO Mark Zuckerberg, for whom this will be the second pivot away from its core business of social media advertising, the first being Zuckerberg’s grand vision of the metaverse sector, which has all but dwindled into a shell of a market. 

Meta’s main revenue model still remains digital advertising revenue earned through its social media platforms, Instagram, Facebook, WhatsApp, and Messenger. 

The update comes as AMD looks to gain sizeable market share in AI by working on a mass supply of chips suitable for AI compute infrastructure. Its main competitor is NVIDIA, and both firms are now targeting more or less the same regions, companies, and clientele for their business. AMD still remains behind in this race, with significantly less revenue and market share for its AI chips. 

“We are proud to expand our strategic partnership with Meta as they push the boundaries of AI at unprecedented scale,” said AMD CEO Lisa Su. “This multi-year, multi-generation collaboration across Instinct GPUs, EPYC CPUs, and rack-scale AI systems aligns our roadmaps to deliver high-performance, energy-efficient infrastructure optimized for Meta’s workloads, accelerating one of the industry’s largest AI deployments and placing AMD at the center of the global AI buildout.”

At the time of writing, AMD’s shares were trading at $210.04, up by more than 6%. 

AMD’s shares rise by more than 6% after announcing expanded GPU partnership with Meta

Source: Google Finance

While AMD remains behind NVIDIA, its recent quarterly earnings report still shows its earnings from data centers are sizeable, earning $5.4 billion in Q4 alone. However, analysts were not bullish on the stock, and its shares dropped by more than 15% after the results were posted.

Coin Headlines covers the latest news in crypto, blockchain, Web3, and markets, bringing you credible and up-to-date information on all the latest developments from around the world.

We focus on real-time news updates, market movements, whale transfers, and macroeconomic trends to keep you informed and engaged. Whether it’s Bitcoin price swings, altcoin updates, meme coin hype, regulatory changes, or major moves from the world of traditional finance, Coin Headlines gives you what you need to know, right when you need it.