Meta has announced a sweeping multiyear partnership with Nvidia that represents one of the largest AI infrastructure commitments in technology industry history. The agreement will see Meta deploy millions of AI chips across its expanding data center footprint, including both current-generation graphics processing units and next-generation systems featuring Nvidia's revolutionary Vera Rubin architecture. This landmark deal signals Meta's ambitious and determined push toward achieving artificial superintelligence and cements the company's position as one of the world's largest purchasers of AI computing power.
The partnership significantly expands beyond Meta's previous decade-long relationship with Nvidia. Most notably, Meta will become the first company in the world to deploy Nvidia's Grace central processing units as standalone chips in its data centers, rather than incorporating them alongside GPUs in traditional server configurations. This pioneering deployment marks the first large-scale implementation of Grace CPUs operating independently, representing a significant validation of Nvidia's semiconductor strategy.
Industry analysts estimate the new agreement falls within the tens of billions of dollars range, representing a substantial portion of Meta's planned capital expenditure for 2026. In January, the company announced plans to spend up to $135 billion on AI initiatives throughout the year, with infrastructure investments forming a critical component of this ambitious spending plan.
The comprehensive partnership encompasses multiple technology components beyond processors. Meta will utilize Nvidia's Spectrum-X Ethernet switches for connecting GPUs within large-scale AI clusters. Additionally, the agreement includes security capabilities that will be integrated directly into WhatsApp's AI features.
Meta's infrastructure expansion includes plans for 30 data centers globally, with 26 located within the United States. The two largest AI data centers currently under construction are the Prometheus 1-gigawatt site in New Albany, Ohio, and the 5-gigawatt Hyperion facility in Louisiana.
The next-generation Vera CPUs are planned for deployment beginning in 2027. The announcement sent shares of both Meta and Nvidia higher during extended trading, while Advanced Micro Devices stock declined approximately four percent.
This infrastructure deal represents a pivotal moment in the AI arms race, demonstrating that even well-funded hyperscalers continue to rely heavily on Nvidia's technology despite ongoing efforts to develop custom silicon solutions.