Meta announced the signing of an agreement with NVIDIA to supply millions of artificial intelligence processors.
Meta has signed a multi-year contract with NVIDIA to expand its data centers with millions of Grace and Vera processors, along with Blackwell and Rubin graphics units.
Meta has long used NVIDIA hardware for its AI products. This agreement marks the “first large-scale deployment powered exclusively by Grace processors,” which, according to NVIDIA, will deliver “a significant increase in performance per watt within Meta’s data centers.” The contract also includes plans to add next-generation Vera processors to Meta’s data centers in 2027.
Meta is also working on developing its own custom processors to run artificial intelligence models; however, according to the Financial Times, it has faced “technical challenges and delays in launch.”
NVIDIA is also facing concerns regarding depreciation and extensive borrowing to finance AI projects and remains under intense competition. After reports emerged that Meta was considering using Google Tensor chips for artificial intelligence, NVIDIA’s stock value dropped by four percent. At the end of last year, AMD also signed an agreement with OpenAI and Oracle.
NVIDIA and Meta have not disclosed the value of the contract; however, it is estimated that spending on artificial intelligence by Meta, Microsoft, Google, and Amazon this year will exceed the total budget of the Apollo space program.