Meta Platforms has agreed to buy 6 gigawatts’ worth of artificial intelligence computing power from Advanced Micro Devices (AMD) in a deal valued at more than $100 billion that could result in Meta owning as much as 10% of AMD’s stock, reported the Wall Street Journal.

The deal, announced by the companies Tuesday, represents a coup for AMD in its effort to challenge Nvidia in the market for selling graphics processing units, or GPUs—the microchips powering the AI boom.

The owner of Facebook has agreed to the AI chips deal despite fears over the vast sums being spent on the AI industry, reported The Guardian.

AMD had signed a similar pact with OpenAI last year, which was hailed as a vote of confidence in its chips and software, significantly boosting its stock price.

A recent series of chip supply agreements underscores the AI industry’s appetite for processors. Meta has separately struck a deal with AMD’s larger rival Nvidia to buy millions of AI chips.

Under this deal, AMD would supply 6GW worth of chips to Meta, which also owns Instagram and WhatsApp, starting with 1GW of the company’s forthcoming MI450 hardware in the second half of this year, said AMD’s chief executive, Lisa Su.

In addition to AMD’s flagship graphics chips (GPUs), Meta also plans to buy central processors (CPUs), including a variant that will be customised for the social media platform’s needs, it added.