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also agreeing to be one of AMD's lead customers for its sixth-generation EPYC central processing units (CPUs).Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »In exchange, Meta will receive warrants for up to 160 million AMD shares. The warrants will vest based on GPU shipments and AMD's stock price. The 160 million shares, when vested, would be about a 10% stake in AMD based on its current share count.Meta is betting big on artificial intelligence (AI), with plans to spend between $115 billion and $135 billion in capital expenditures (capex) this year alone. Earlier this month, Meta struck a deal with Nvidia to deploy both its GPUs and new Grace CPUs in its data centers. It will be the first large-scale deployment of Nvidia CPUs not directly tied to its GPUs.A week later, Meta turned around and struck a deal with AMD. Meta nicely gets a large stake in the company, which essentially gives it a discount on its chip purchase. The social media giant has also reportedly been in talks with Alphabet to use its Tensor Processing Units in its data centers, while also reportedly working with Broadcom to develop its own custom AI application-specific integrated circuits.This is a smart strategy as Meta looks to break away from its reliance on Nvidia for computing power. If Meta can successfully deploy AI chips from different vendors in its data centers, it should be able to help lower costs and diversify its supply chain.At the same time, Meta securing CPUs from both AMD and Nvidia is another forward-thinking move. With the rise of agentic AI, it looks like CPUs are going to become increasingly important and perhaps the next bottleneck in the AI race. With these deals, Meta is looking to get ahead of this.Image source: Getty Images.Few companies have been as good as Meta at incorporating AI into their core business to drive growth. Its AI investments have been paying off with strong ad impressions and price growth, which helped the company grow its revenue by 24% last quarter. While Meta has been criticized for its AI infrastructure buildout plans by some investors, the company is getting a strong return on its spending, so investing heavily in this area makes sense.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,838.75 -50.25 (-0.73%)Dow Futures48,628.00 -372.00 (-0.76%)Nasdaq Futures24,796.25 -208.50 (-0.83%)Russell 2000 Futures2,605.00 -29.70 (-1.13%)VIX19.86 +1.23 (+6.60%)Gold5,374.00 +126.10 (+2.40%)Trending tickersBTC-USD Bitcoin USD 66,824.53 -583.35 (-0.87%)CL=F Crude Oil Apr 26 70.90 +3.88 (+5.79%)XOM Exxon Mobil Corporation 152.50 +3.96 (+2.67%)PLTR Palantir Technologies Inc. 137.19 +1.25 (+0.92%)LMT Lockheed Martin Corporation 658.08 +16.45 (+2.56%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 84.23 +30.54 (+56.88%)BWIN The Baldwin Insurance Group, Inc. 23.23 +4.74 (+25.64%)FIGS FIGS, Inc. 15.45 +2.98 (+23.90%)DELL Dell Technologies Inc. 148.08 +26.63 (+21.93%)PSKY Paramount Skydance Corporation 13.51 +2.33 (+20.84%)Top losersRUN Sunrun Inc. 13.25 -7.17 (-35.11%)FIGR Figure Technology Solutions, Inc. 25.28 -8.76 (-25.73%)CRWV CoreWeave, Inc. 79.56 -18.07 (-18.51%)ACA Arcosa, Inc. 107.48 -20.02 (-15.70%)TPC Tutor Perini Corporation 75.37 -14.01 (-15.67%)Most activeNVDA NVIDIA Corporation 177.19 -7.70 (-4.16%)NFLX Netflix, Inc. 96.24 +11.63 (+13.75%)NU Nu Holdings Ltd. 14.98 -0.08 (-0.53%)PLUG Plug Power Inc. 1.7900 -0.1200 (-6.28%)SOFI SoFi Technologies, Inc. 17.76 -1.34 (-7.02%)Top economic eventsEarnings eventsMy earnings eventsEarnings events