Meta Buys Millions of Nvidia AI Chips in Multiyear Deal
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- Meta agreed to a multiyear deal to purchase millions of Nvidia Grace and Vera CPUs alongside Blackwell and Rubin GPUs to expand its data centers, with Vera CPUs planned for 2027 deployment.
- Nvidia called the arrangement the "first large-scale Nvidia Grace-only deployment," saying it will deliver "significant performance-per-watt improvements" for Meta's data centers.
- Meta is also developing its own in-house AI chips but has run into "technical challenges and rollout delays," according to the Financial Times.
- Nvidia's stock dropped 4 percent after a November report surfaced that Meta was considering using Google's Tensor chips for AI, per CNBC.
- AMD announced chip arrangements with both OpenAI and Oracle late last year, sharpening competition against Nvidia.
- Nvidia is also facing concerns about depreciation and chip-back loans used to finance AI build-outs, according to CNBC.
- Combined AI spending by Meta, Microsoft, Google, and Amazon this year is estimated to exceed the cost of the entire Apollo space program.
Why it matters: Meta is pouring billions into Nvidia chips while its in-house chip program hits delays and it reportedly eyes Google's Tensor chips — a combination that already cost Nvidia 4 percent of its stock value in November. With AMD landing OpenAI and Oracle, this multiyear, million-chip commitment is Nvidia defending its core customer base against a multi-front threat.
