Meta to Spend Billions on AMD Gear, AI Scare Trade Continues
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What is the main topic discussed in this episode?
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This is Bloomberg Tech. Coming up, Meta agrees to buy AMD chips and data center gear in a deal worth tens of billions of dollars. Plus, AI whiplash in markets. It erupts again as investors navigate the disruptive power of agentic tools being unveiled by Anthropic. and Warner Brothers Discovery is considering a new takeover bid from Paramount Skydance with its board set to review the proposal and respond. But first, we check in on these markets that bounced back after yesterday's sell-off. Again, anthropic front and center. The latest AI tools that have been battering software are now adding some fuel to them. We'll get into that story a little bit later. But at the moment, NASDAQ 100 up by nine-tenths of a percent.
Reprieve, remember, also consumer confidence from a macro perspective coming in better than anticipated. Looking at Bitcoin, though, just nothing better than anticipated with this particular asset. We're currently at 63,993. The pressure's still there, Ed. But what have you got? Let's get to our top story. Shares of AMD pushing higher. Meta flat had been slightly softer. At one point in the session, AMD was up about 9% and on track for its best day since November. This is a six gigawatt deal. Meta has agreed to buy AMD chips and data center supplies in a deal worth double digit billions per gigawatt. This is the social media giant looks to prioritize. It's AI ambitions here to break it down. Bloomberg's Ian King on the chip side, Riley Griffin on the meta side around the table.
Ian, I'm going to start with you. The basics of the deal, six gigawatts over time, AMD accelerators, but also other gear. It's a big deal for them.
Yeah, it's a real endorsement from one of the biggest buyers of this kind of equipment. Obviously, they're playing catch up with NVIDIA, who had their own deal with Meta last week. So this is a real strong affirmation. And it also includes a share of warrants as well that are going to Meta.
Riley, this is all about metacompute. Talk us through just how large the scale is for demand for this sort of infrastructure right now.
It's insatiable demand from Meta. Mark Zuckerberg last month announced Meta Compute with ambitions to get hundreds of gigawatts to fuel its data centers and ultimately reach that super intelligence goal where AI can outpace human intelligence. And this is just the latest in a frenzy of deals. Again, we're anticipating $135 billion in CapEx this year, but now we know the spending won't stop.
The warrants part is very interesting. It's very similar to what AMD did with OpenAI. There are operational and financial milestones in both directions in order for Meta to potentially become a very big shareholder of AMD.
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Chapters
7 chapters
1
What is the main topic discussed in this episode?
0:01–6:26
2
What is Meta's multi-billion dollar deal with AMD about?
6:26–7:05
3
How is AI impacting market dynamics and investor sentiment?
7:05–7:34
4
What are the implications of AI tools unveiled by Anthropic?
7:34–11:27
5
How does Meta's deal with AMD affect its AI ambitions?
11:27–17:24
6
What challenges does AMD face in the competitive chip market?
17:24–47:01
7
How are companies navigating the AI disruption in software?
47:01–48:11
Speakers
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