Amd supplies Meta $60B in AI chips while Nvidia watches

Key Takeaways

• AMD secured a five-year deal to supply Meta with up to $60 billion in AI chips, including Instinct GPUs, Helios, and MI450 hardware, with shipments starting in H2 2026.
• Meta gains the right to acquire up to a 10% equity stake in AMD through performance-based warrants tied to GPU shipments and stock price milestones.
• Meta is diversifying its AI hardware suppliers, maintaining existing deals with Nvidia and exploring partnerships with Google, following AMD's prior pact with OpenAI.
• A Citrini Research report on AI's potential economic disruption caused a significant global selloff in software stocks, impacting sectors in India and Europe.
• WiseTech announced cutting 2,000 jobs, or 28% of its workforce, due to AI advancements enabling increased productivity.
• AI financial platform Rowspace raised $50 million in funding, led by Sequoia Capital, to help investment firms manage complex data.
• Seagate has become a key AI infrastructure player, with its nearline data center storage capacity fully committed through 2026.
• Palantir Technologies reported 137% year-over-year commercial revenue growth, driven by its Artificial Intelligence Platform strategy.
• Mercado Libre's advertising business grew 67% year-over-year, partly due to AI-powered bidding algorithms and automated tools.
• French private equity firm Ardian will decline investments in certain software sub-sectors due to AI risks, emphasizing enhanced risk analysis for portfolio companies.

AMD partners with Meta for massive AI chip deal

Advanced Micro Devices (AMD) has agreed to sell up to $60 billion worth of artificial intelligence chips to Meta Platforms over five years. This significant deal allows Meta to potentially purchase up to 10% of AMD's stock. The agreement follows a similar pact AMD made with OpenAI last year. Analysts see this as a move by Meta to diversify its AI hardware suppliers and a strong indicator that the AI hardware market is growing beyond its main competitor, Nvidia. The deal includes AMD's Instinct GPUs and Helios rack-scale architecture, with shipments beginning in the second half of 2026.

Meta secures AMD AI hardware in long-term supply deal

Meta is strengthening its artificial intelligence development by signing a long-term supply deal with AMD for AI hardware. The partnership involves Meta implementing AMD Instinct GPUs to build its AI infrastructure, expanding its computing power. This deal is part of Meta's strategy to diversify its suppliers and ensure access to necessary hardware. As part of the agreement, Meta may acquire up to a 10% stake in AMD through performance-based warrants tied to GPU shipments and stock price milestones. Shipments are expected to start in the second half of 2026.

AMD and Meta forge major AI chip partnership with equity stake

AMD and Meta have announced a multi-year partnership where Meta will deploy 6 gigawatts of AMD AI hardware, including Instinct GPUs and Helios rack-scale systems. The deal, valued at approximately $60 billion, also includes Meta acquiring a stake in AMD, potentially owning up to 10% of the company through warrants tied to performance milestones. This collaboration aims to align roadmaps across silicon, systems, and software to accelerate Meta's AI model deployment. Meta also maintains existing deals with Nvidia and is exploring partnerships with Google.

AMD lands $60B AI chip deal with Meta, grants equity stake

Advanced Micro Devices (AMD) has secured a five-year deal to supply Meta with up to $60 billion worth of AI chips, including upcoming MI450 hardware and custom CPUs. Meta also gains the right to purchase up to 10% of AMD's stock through a performance-based warrant. This deal, similar to AMD's pact with OpenAI, highlights Meta's strategy to diversify its chip supply chain. The agreement involves six gigawatts of AMD hardware, with initial deliveries of the MI450 expected in the second half of 2026. The structure of the deal raises investor concerns about circular ownership patterns in the AI industry.

Citrini founder surprised by AI report's market impact

James van Geelen, founder of Citrini Research, expressed surprise that his detailed report on AI's potential to disrupt the global economy triggered a significant stock market selloff. The report, which outlined a worst-case scenario for AI's impact on labor and consumer spending, became a focal point for investors already concerned about AI's disruptive potential. While the market rebounded the following day, the event highlighted the current anxiety surrounding AI's influence on various industries. Van Geelen, who previously gained attention for predicting the Silicon Valley Bank collapse, noted that the market is clearly jumpy about AI's implications.

India's tech and real estate sectors hit by software stock selloff

A broad selloff in software stocks, triggered by a report from Citrini Research detailing AI's potential to disrupt the economy, has impacted India's consumer tech and real estate sectors. Companies like Eternal and Cartrade Tech saw significant declines, mirroring trends seen in US markets. The downturn in tech stocks has also affected the real estate sector, particularly in tech hubs like Bengaluru and Pune, as a potential IT slowdown could reduce housing demand. Meanwhile, companies like ABB are benefiting from the increased demand for data center infrastructure driven by AI.

WiseTech cuts 2,000 jobs due to AI advancements

WiseTech, a freight software provider, announced plans to cut 2,000 jobs, representing about 28% of its workforce, due to significant advancements in artificial intelligence. CEO Zubin Appoo stated that AI is enabling greater productivity with fewer people, fundamentally reshaping software development economics. This move marks one of the largest AI-driven job reductions in Australia. The company's shares rose on the news, recovering from earlier declines driven by concerns about AI making its software redundant. The job cuts are part of WiseTech's 'deep AI transformation' strategy.

AI financial platform Rowspace raises $50 million

Rowspace, an AI platform designed to help investment firms manage complex data, has raised $50 million in funding. The round was led by Sequoia Capital, with participation from Emergence Capital, Basis Set Ventures, Stripe, and others. Founded by MIT graduates Michael Manapat and Yibo Ling, Rowspace aims to transform proprietary data into actionable insights for financial institutions like private equity firms and hedge funds. The platform processes data within the customer's cloud environment, focusing on deep analysis and reasoning rather than just last-mile tasks.

Seagate shifts to AI infrastructure with strong storage demand

Seagate has transformed from a cyclical PC hardware company into a key player in AI infrastructure, driven by high demand for data center storage. The company's nearline capacity is fully committed through 2026, with multi-year contracts extending further, ensuring strong revenue visibility and pricing power. Technological advancements like HAMR are increasing drive capacities and improving margins. Despite elevated valuation multiples, analysts maintain a Buy rating due to structural demand, supply discipline, and technological upgrades.

Palantir's AI platform strategy drives strong growth

Palantir Technologies is experiencing rapid growth, with commercial revenue increasing by 137% year-over-year last quarter. The company is focused on making its platforms, like Foundry and the Artificial Intelligence Platform, the standard operating systems for entire industries. This strategy allows Palantir to embed its software across sectors, creating a strong competitive moat. Despite a high valuation, analysts are bullish on Palantir's long-term potential, expecting its revenue to more than triple by 2028.

Ardian to reject software deals due to AI risks

French private equity firm Ardian will decline investment opportunities in certain software sub-sectors due to the risks posed by artificial intelligence. While Ardian continues to invest in the software sector, AI's potential impact necessitates careful analysis. The firm acknowledges that AI can also bring positive impacts, increasing efficiency and profitability for leading companies that invest in it. Ardian is enhancing its risk analysis for portfolio companies, incorporating AI as a key criterion, and emphasizes the need for humility in assessing AI's long-term effects.

Mercado Libre's AI investments boost revenue growth

Mercado Libre attributes its significant revenue surge, partly supported by AI investments, to improved efficiency and customer experience. The company's advertising business saw 67% year-over-year growth due to AI-powered bidding algorithms and automated tools. Mercado Libre has also deployed AI to enhance its marketplace for both buyers and sellers, personalizing search results and assisting sellers with onboarding and customer service. In its FinTech business, AI tools are improving payment processing and customer support.

Nvidia earnings expected to impact AI stock market

Nvidia's upcoming earnings report is highly anticipated as it could significantly influence the AI stock market. Competitors like AMD and Intel, along with suppliers like TSMC, are expected to react to Nvidia's results. While Nvidia has historically shown strong fundamentals, its stock performance after earnings has been mixed. The company is a key player in the AI chip sector, and its financial results are closely watched by investors across the industry, including cloud companies and storage providers.

European software stocks face uncertainty after AI selloff

European software stocks are experiencing pressure due to fears of disruption from advancing AI technologies, particularly following the launch of Anthropic's Claude language model. Major European software companies have seen significant losses this year. Analysts suggest a rebound may take over a year, as investors try to identify which companies can leverage AI effectively. While some tentative buying is occurring, the overall narrative has shifted, impacting earnings and valuations across the sector.

Sources

• AMD secures Meta as next big AI chip customer
• Meta signs long-term supply deal with AMD for AI hardware
• AMD and Meta sign massive AI deal, billions in chips, with Meta to own 10% of AMD
• AMD Lands $60 Billion AI Chip Deal With Meta – And Gives Up a Piece of Itself
• Citrini Founder Shocked His AI Prediction Spurred Stocks Selloff
• Software Rout Ripples Through India’s Consumer Tech, Real Estate
• WiseTech to Cut 2,000 Jobs as AI Ends Era of Manual Coding
• Exclusive: AI financial platform Rowspace raises $50 million round led by Sequoia to help investment firms take on messy data
• Seagate: From Cyclical Hardware To AI Infrastructure Story
• Wall Street Is Divided on This AI Stock. Here's Why I'm Bullish.
• Ardian Says It Will Turn Down Some Software Deals on AI Risk
• Mercado Libre Says AI Investments Support 45% Revenue Surge
• Nvidia Earnings Today Could Swing AI Trade: AMD, Intel, TSMC Among Stocks To Watch
• After the Selloff, Where Next for European Software Stocks?