"Meta will buy AMD's latest chips, the MI450, to help power data centers. The 6-gigawatt agreement will see shipments supporting the first gigawatt deployment set to start during the second half of this year. The agreement could potentially be worth more than $100 billion."
"Nvidia carved out an early lead in tailoring its chipsets known as graphics processing units, or GPUs, from use in powering video games to helping to train powerful AI systems, like the technology behind ChatGPT and image generators. Demand skyrocketed as more people began using AI chatbots."
"While the appetite for AI chips is still large, there are some concerns about how much companies like Meta are spending on AI and whether they can make back their huge investments through higher profits and productivity in the future."
Meta Platforms will purchase AMD's MI450 artificial intelligence chips in a 6-gigawatt agreement potentially worth over $100 billion, with the option to buy up to 10% of AMD. The first gigawatt deployment begins in the second half of this year. This deal follows Meta's recent long-term partnership with Nvidia for millions of chips and equipment for AI data centers. AMD seeks to compete with Nvidia's dominant position in AI chips, which gained early advantage by adapting graphics processing units for AI system training. Tech companies face massive demand for AI chips to power chatbots and AI applications, though concerns exist about whether companies can recoup their substantial AI investments through future profits and productivity gains.
#ai-chip-procurement #meta-and-amd-partnership #ai-infrastructure-investment #nvidia-competition #data-center-expansion
Read at ABC7 San Francisco
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