Meta Pledges Billions in Massive AI Chip Deal with Nvidia
Meta Platforms has unveiled a significant expansion of its partnership with Nvidia. The social media behemoth has committed to deploying millions of AI chips across its global data centers, a deal estimated to be worth tens of billions of dollars.
The company plans to utilize Nvidia’s Blackwell and next-generation Vera Rubin graphics processing units (GPUs) in its ambitious strategy to invest up to $135 billion on AI infrastructure by 2026. Notably, Meta is also the first major tech company to deploy Nvidia’s Grace central processing units (CPUs) as standalone chips in large-scale data center production applications.
“This expanded partnership continues our push to deliver personal superintelligence to everyone in the world,” said Meta CEO Mark Zuckerberg. The deal signifies a substantially broader relationship between the two tech giants, with engineering teams from both companies collaborating to optimize cutting-edge AI models.
Following the announcement, shares of both Meta and Nvidia experienced an uptick, while competitor AMD saw its stock decline by approximately 4%. This partnership further solidifies Nvidia’s dominant position in the AI chip market, despite increasing competition from in-house chips developed by tech giants and alternative suppliers.
Source: CNBC