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Meta Platforms Signs Multi-Billion Dollar AI Deal with AMD

Meta Platforms Signs Multi-Billion Dollar AI Deal with AMD

AMD’s shares jumped over 14% in pre-market trading as Meta Platforms agreed to purchase artificial intelligence hardware, reflecting growing tech sector demand for AI infrastructure.

Summary

Meta Platforms has entered a multi-billion dollar agreement with semiconductor manufacturer AMD (Advanced Micro Devices) to acquire artificial intelligence (AI) equipment. Following the announcement, AMD’s pre-market shares rose 14.46% to $225.01, according to data from crypto and derivatives exchange Bitget on February 24. The deal highlights the intensifying competition among technology giants to secure advanced AI hardware capabilities, a critical component in powering large-scale AI models and cloud computing systems.

Terms & Concepts
  • Artificial Intelligence (AI) equipment: Hardware and components used to develop and run AI models, including GPUs and specialized accelerators.
  • Pre-market trading: A period before regular market hours when investors can trade securities, often reacting to news or earnings.
  • AMD (Advanced Micro Devices): A leading U.S. semiconductor company known for producing CPUs and GPUs used in computers and AI systems.