Advanced Micro Devices made a major move in the escalating chip war today, inking a multibillion-dollar deal that ties it more closely to Meta, a major customer.

State of play: The No. 2 GPU seller behind Nvidia agreed to supply AI chips that will allow Meta to deploy up to 6 gigawatts of computing power.

• Meta is receiving warrants that would allow it buy shares of AMD if certain performance targets are hit, which could ultimately see it owning as much as 10% of the chipmaker.

The big picture: It comes just a week after Meta announced a deal to buy chips from Nvidia — and is the latest example of a circular deal in which a customer or supplier takes a stake in the other.

• The agreement mirrors one AMD struck with OpenAI last October when the AI startup agreed to buy billions of dollars' worth of chips and take a 10% stake.

Zoom in: The first chip shipments in the AMD-Meta deal will begin the second half of this year.

• A gigawatt represents enough power to electrify a small city.
• AMD stands to gain tens of billions of dollars in revenue for each gigawatt of computing power, the Wall Street Journal notes.

Market impact: AMD shares jumped 9%, while Meta wavered before closing slightly higher.

Spirit Airlines reached a deal to avoid liquidation.

• Why it matters: The budget carrier filed for Chapter 11 bankruptcy protection in August for the second time in less than a year, aiming to stay in business despite numerous business challenges.

Zoom in: The airline confirmed today that it has lined up support from key creditors to exit bankruptcy as a slimmed-down independent operation.

• It expects to emerge in the late spring or early summer after slashing its debt and lease obligations from $7.4 billion to about $2.1 billion.

State of play: The ultra-low-cost carrier has maintained its operations and continued accepting bookings after filing its second bankruptcy in what restructuring experts coyly call Chapter 22.

• It had pledged to use the restructuring process to overhaul its route network, reduce its fleet size, cut other costs and increase premium options for travelers.

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Home Depot announced this morning it beat expectations for Q4, but offered a mixed read on the U.S. consumer: financially resilient — but increasingly uneasy, Axios' Kelly Tyko writes.

• Why it matters: The home-improvement giant serves one of the economy's strongest spending groups — middle- and upper-income homeowners — making any shift in their confidence an early read on broader consumer demand.

Driving the news: Company executives said customers are worried about housing affordability, job stability and higher financing costs — pressures the company doesn't expect to ease quickly.

• The housing market remains stuck near historic lows for turnover, and Home Depot said it hasn't seen a clear catalyst for a rebound.

What's we're watching: Home Depot forecast 2026 comparable sales between flat and up 2%, saying affordability pressures and consumer uncertainty are likely to persist.

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📺 Warner Bros. Discovery said Paramount Skydance raised its offer price a dollar to $31 per share and added that the updated bid "could reasonably be expected" to lead to a superior proposal — potentially reigniting a bidding war with Netflix. (Axios)

💸 Payment processor Stripe is reportedly considering an acquisition of PayPal. (Bloomberg)

An ambitious robot vacuum owner trying to link his DJI Romo to a PlayStation controller inadvertently took control of nearly 7,000 of them around the world, Axios' Pete Gannon writes.

Zoom in: Sammy Azdoufal told The Verge that after reverse engineering DJI's protocols using Claude Code to connect with his own device, he discovered he was able to control thousands of other vacuums.

• He could see and hear through their live camera feeds, and generate the floor plans the robots use to navigate homes.

Azdoufal contacted China-based DJI to report the security flaw, per the report.

• The company reportedly confirmed it had identified a vulnerability, describing it as "a backend permission validation issue."

State of play: According the report, DJI had fixed most of the issue, and committed to closing other security flags raised by Azdoufal.