Meta’s new deal with Nvidia buys millions of AI chips

Meta has struck a multi-year deal to expand its data centers with millions of Nvidia’s Grace and Vera CPUs and Blackwell and Rubin GPUs. While Meta has long used Nvidia hardware for its AI products, this deal “represents the first large-scale deployment of just Nvidia Grace,” which Nvidia says It will deliver “significant performance improvements per watt in meta-data centers.” The deal also includes plans to add Nvidia’s next-generation Vera CPUs to Meta data centers in 2027.

Also dead Working on its internal chips To run AI models, but according to Financial Timesit has experienced “technical challenges and rollout delays” regarding its chip strategy. Nvidia also deals with Concerns about Consumption and payback loans used to finance AI construction operations, as well as competitive pressures. CNBC He notes that Nvidia stock fell four percent after a November report about Meta considering using Google Tensor chips for AI, and late last year, AMD announced chip arrangements with both. OpenAI and oracle.

Nvidia and Meta did not disclose the cost of the deal, but AI spending this year from Meta, Microsoft, Google and Amazon is expected to cost more than the deal. The entire Apollo space program.