Lana

As part of the agreement, Meta will get long-term AMD options, which it can convert into shares if the chipmaker meets certain targets.

Over time, that could let Meta build up a roughly 10% stake.

Investors liked AMD's side of the bargain, sending the stock up around 9% after the news.

But they didn't see much in it for Meta, and left those shares as they were.

Meta signed a similar deal with Nvidia just recently, agreeing to buy millions of its chips over the next few years too.

But the big tech firm is smart to secure some backups.

Nvidia's famous for eye-watering prices and tight supply, so locking in a second supplier should help shield Meta from some of that stress.

Alphabet, Amazon, and Microsoft are aware of the risk too.

Like Meta, they've designed their own chips in-house to gain more control over supply chains.

Meta, Amazon, Microsoft, and Alphabet now expect to spend more than $650 billion on buildings, hardware, and other tech this year, most of which is tied to AI.

That's roughly 60% more than last year's record splurge, and that could bode well for the US economy as a whole.

After all, AI-related spending is estimated to have added about a full percentage point to the country's economic growth last year.

Before we dive into the next story, it's time for our daily check-in with Carl.

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Next up...

These days, businesses can use all-singing, all-dancing AI startups to spin up a lot of the same jobs they once went to a dedicated software specialist for, in one place, all at once, for a fraction of the cost.

For software companies, that puts their monthly subscriptions at risk.