Meta and Nvidia announced an expanded multiyear deal for Meta to use millions of Nvidia chips in its AI data centers.
The agreement significantly broadens a decade-long partnership and underscores Meta’s aggressive capital spending on artificial intelligence infrastructure. The deal is estimated to be worth tens of billions of dollars and represents a major portion of Meta’s planned capital expenditures.
The expanded deal includes Nvidia’s standalone Grace central processing units, next-generation GPUs, and Vera Rubin rack-scale systems. Meta becomes the first company to deploy Nvidia’s Grace CPUs as standalone chips in its data centers, with large-scale deployment planned. Nvidia’s next-generation Vera CPUs are planned to be deployed by Meta in 2027.
The partnership also incorporates Nvidia’s Spectrum-X Ethernet networking technology and security capabilities for AI features on WhatsApp. Meta has secured a healthy supply of Nvidia’s current Blackwell GPUs, which have been on back-order for months, and the next-generation Rubin GPUs, which recently entered production.
Chip analyst Ben Bajarin of Creative Strategies stated the deal is certainly in the tens of billions of dollars. Bajarin said a good portion of Meta’s capital expenditure will go toward this Nvidia build-out. Bajarin added that Meta’s deployment affirms Nvidia’s strategy for both CPU and GPU infrastructure.
Meta CEO Mark Zuckerberg announced a vision in July to deliver personal superintelligence to everyone in the world. The expanded partnership continues this push, according to Zuckerberg.
The deal is part of Meta’s overall commitment to spend $600 billion in the U.S. by 2028 on data centers and infrastructure. Meta has plans for 30 data centers, with 26 based in the U.S. Two large AI data centers under construction are the Prometheus 1-gigawatt site in New Albany, Ohio, and the 5-gigawatt Hyperion site in Richland Parish, Louisiana.
In January, Meta announced plans to spend up to $135 billion on AI in 2026. Financial terms of the Nvidia deal were not provided.
Engineering teams from Nvidia and Meta will work together in deep codesign to optimize and accelerate AI models for Meta. Meta is developing a new frontier model dubbed Avocado as a successor to its Llama AI technology.
Shares of Meta and Nvidia climbed in extended trading on Tuesday. Advanced Micro Devices stock sank about 4% on the news.
