Advanced Micro Devices partners with Meta and will invest $1 billion in its equity offering
Meta plans to sell $22.5 billion of Class A common stock and may sell up to $60 billion of Class C shares.
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Advanced Micro Devices has agreed to a strategic partnership with Meta to support the build-out of Meta's superintelligence infrastructure. Advanced Micro Devices will also invest $1 billion in Meta's equity offering.
Meta plans to sell $22.5 billion of Class A common stock and may sell up to $60 billion of Class C stock. The Class C shares are nonvoting and are designed to preserve Mark Zuckerberg's control while the company raises large sums.
On Monday, Nvidia, Advanced Micro Devices and Broadcom agreed to buy up to $5 billion of Meta Class A shares. Credit default swaps are contracts that insure against a borrower failing to repay, so their price shows what investors charge to hold that risk. A basis point is one hundredth of a percentage point.
The partnership goes further than a share purchase. It ties Advanced Micro Devices' chip plans to a single named customer at a time when Meta's capital spending needs are rising and the cost of its borrowing is widening.
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