Meta Platforms commits millions of AI GPUs from Nvidia in expanded infrastructure partnership

Jim Cramer Says Those Building Own Chips May Have To Worry About Allocations After Meta Deal, Calls Smugness Toward Nvidia 'Tiresome' - Advanced Micro Devices (NASDAQ:AMD), Alphabet (NASDAQ:GOOG)

On Tuesday, CNBC's Jim Cramer warned that competitors trying to reduce reliance on Nvidia Corp (NASDAQ:NVDA) could face tighter chip access after Meta Platforms, Inc. (NASDAQ:META) expanded its long-term AI infrastructure partnership with the chipmaker. Cramer Flags GPU Supply Concerns After Meta-Nvidia Deal Cramer reacted on X following the announcement from Meta and Nvidia, calling it a "surprise announcement" and a "huge commitment." He suggested companies aiming to build their own chips "may have to worry about allocations," adding that "the smugness toward NVDA by any and all is tiresome." Meta Expands AI Infrastructure With Nvidia's Full Stack Under the agreement, Meta and Nvidia will collaborate closely across chips, networking and software to optimize AI training and inference workloads. Nvidia founder and CEO Jensen Huang said the companies are engaging in "deep co-design across CPUs, GPUs, networking and software" to bring the full Nvidia platform to Meta's engineers. Meta plans to build advanced AI clusters using Nvidia's next-generation Rubin platform. CEO Mark Zuckerberg said the expanded partnership will help deliver "personal superintelligence to everyone in the world." Meta has also adopted Nvidia's Confidential Computing technology to improve WhatsApp's private messaging and is using Nvidia's Spectrum-X Ethernet platform to support AI-scale networking. AI Compute Race Heats Up Futurum Group CEO Daniel Newman said on X that "$META will buy and build compute and $NVDA is core to its mission," describing the AI race as a battle for maximum compute capacity. In a separate post, he added that Meta will "still buy $AMD btw. It is AND not Or," underscoring that the company continues to diversify suppliers. Meta Is Also Expanding Beyond Nvidia Meta develops its own in-house silicon and has explored alternatives, including chips from Advanced Micro Devices, Inc. (NASDAQ:AMD) and other providers. Still, Nvidia's Blackwell GPUs remain back-ordered and Rubin chips have entered production. Price Action: At the time of writing, Meta shares are up 0.66% in after-hours trading, while Nvidia gained 0.79% during the same period, according to Benzinga Pro. Meta stock earns a strong Quality rating in Benzinga's Edge Stock Rankings, though its price trend remains negative across the short, medium and long-term periods. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: katz / Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Meta Platforms Just Gave Incredible News for Nebius Investors

Meta Platforms' big capex increase bodes well for this Nvidia cloud partner. Meta Platforms (META +1.69%) has been pushing the envelope in the field of artificial intelligence (AI), integrating the technology across its advertising and social media offerings, apart from offering consumer-facing AI tools such as chatbots for businesses. However, the company's AI push comes at a sizable cost. Meta is on track to incur $115 billion to $135 billion in capital expenses this year, an increase of almost 74% over last year's outlay at the midpoint. The company will spend a big chunk of this money purchasing AI accelerator chips from Nvidia (NVDA +1.02%), based on the latest announcement from the two companies. While Nvidia is set to benefit from Meta's capital spending this year, neocloud infrastructure provider Nebius Group (NBIS 9.12%) is likely to be another winner. Meta's AI spending will be a tailwind for Nvidia's cloud partners Meta says it will purchase "millions of Nvidia Blackwell and Rubin GPUs" this year, in addition to deploying the chip giant's Arm-based Grace server central processing units (CPUs) in large numbers. An important point in Nvidia's press release was that Meta will tap the former's cloud partners to deploy AI chip systems: "Meta will deploy industry-leading NVIDIA GB300-based systems and create a unified architecture that spans on-premises data centers and NVIDIA Cloud Partner deployments to simplify operations while maximizing performance and scalability," the company said. Nvidia's cloud partners provide full-stack hardware and software solutions powered by the chip giant's chip systems, networking components, and software solutions. Nebius is a part of this program. The neocloud company offers access to various Nvidia GPUs, such as the H200, the H100, and Blackwell systems, by charging hourly rentals based on customers' needs. Additionally, customers can run popular AI models for various applications on Nebius' software stack by purchasing tokens, which are the smallest units of data used by AI models to process and generate AI workloads. The good part is that Meta is already a Nebius customer, having awarded the latter a $3 billion contract in November 2025. This five-year contract will be a key growth driver for Nebius, which also counts Microsoft as a major customer with a five-year contract worth over $19 billion. Now that Meta is on track to significantly boost its capex in 2026 and is probably going to allocate a significant chunk of the same on Nvidia's infrastructure offerings, including through the cloud partner network, Nebius' revenue backlog will likely get better. Nebius' growth could exceed expectations in 2026 Analysts already anticipate an exponential increase in Nebius' revenue this year. Its top line is forecast to jump to almost $3.4 billion in 2026 from $530 million in 2025. Such an impressive jump isn't out of Nebius' reach, as we have already seen it has an impressive backlog worth over $20 billion from the likes of Meta and Microsoft. This figure could rise further with an increase in data center spending this year. Moreover, Nebius aims to increase its data center sites to 16 this year, up from seven in 2025. It plans to end 2026 with 800 megawatts (MW) to 1 gigawatt (GW) of active data center power capacity, up from 170 MW at the end of last year. So, this AI stock has enough fuel in the tank to significantly increase its revenue this year, which should ideally pave the way for more upside following a remarkable 140% jump in the past year.

Meta, Nvidia Shares Move Higher On Long-Term AI Infrastructure Deal - Meta Platforms (NASDAQ:META)

Meta Platforms Inc (NASDAQ:META) shares are moving higher in extended trading Tuesday after the company announced a long-term infrastructure partnership with Nvidia Corp (NASDAQ:NVDA). Meta Platforms stock is building positive momentum. Why is META stock trading higher? Meta, Nvidia Ink Long-Term Deal Meta and Nvidia announced a long-term AI infrastructure partnership to support Meta's build-out of data centers optimized for AI training and inference. Meta said it will use Nvidia technology to help deliver substantial improvements in performance per watt. "Through deep co-design across CPUs, GPUs, networking, and software, we are bringing the full NVIDIA platform to Meta's researchers and engineers as they build the foundation for the next AI frontier," said Jensen Huang, founder and CEO of Nvidia. Under the partnership, engineering teams from both Meta and Nvidia are expected to optimize and accelerate state-of-the-art AI models across core workloads. Meta has also adopted Nvidia's Confidential Computing for WhatsApp private messaging and the company's Spectrum-X Ethernet networking platform for AI-scale networking. "We're excited to expand our partnership with NVIDIA to build leading-edge clusters using their Vera Rubin platform to deliver personal superintelligence to everyone in the world," said Mark Zuckerberg, founder and CEO of Meta. Tech Giants Get A Boost After Hours META, NVDA Price Action: Meta shares were up 1.11% in after-hours, trading at $646.40 at the time of publication. Nvidia shares were also higher, last up 1.10% at $187, according to Benzinga Pro. Image: Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Meta Just Made a Striking Move. And It's Excellent News for Nvidia. | The Motley Fool

Nvidia has built an AI empire and dominates the AI chip market. Meta Platforms (META +0.24%) has been one of the most noteworthy names in the artificial intelligence (AI) space over the past couple of years. The company, known for its social media apps, has spoken of its intentions to pursue AI and even bring superintelligence to people around the world. As part of this, Meta has been spending billions of dollars to build out data centers, create large language models, and offer AI features to app users and its advertising customers. What's the relationship between Meta and AI chip leader Nvidia (NVDA 0.11%)? Meta is one of Nvidia's biggest customers, buying the tech giant's graphics processing units (GPUs) to power key tasks such as the training of its AI models. Though Meta is a significant Nvidia customer, the company has also turned to rival chip designer Advanced Micro Devices in the past, and Meta even makes its own chips. Meta isn't alone. Some of Nvidia's other customers -- Amazon, for example -- operate in the same way: They seek chips from a variety of sources. And this has prompted investors to worry that Nvidia eventually may lose market share. But, in recent days, Meta made a striking move, and it's excellent news for Nvidia. Let's check it out. First, though, let's start off with a quick summary of Nvidia's business so far. Even before AI became a high-growth industry, Nvidia recognized the potential of the technology and decided to design its GPUs to suit it. This early market presence helped Nvidia build an AI empire that now includes a variety of products from software to networking tools. Importantly, this focus on AI from the earliest days has brought Nvidia expertise and kept the company a step ahead of rivals: Nvidia's GPUs continue to maintain their reputation as the most powerful on the market. On top of this, Nvidia has committed to updating these chips annually, a move that makes it very difficult for competitors to slip ahead. Still, investors have worried about the increasing strength of products from rivals such as AMD -- and even moves by Meta, Amazon Web Services (AWS), and others to create their own chips. These new chips are cheaper than Nvidia's GPUs, offering them a clear selling point. Now, let's turn to the move Meta just made that should relieve investors' concerns. Meta has signed a new deal with Nvidia for the purchase of millions of chips, including GPUs, stand-alone central processing units (CPUs), and networking and security technologies. The value of the deal wasn't released, but CNBC cited Creative Strategies analyst Ben Bajarin as saying it may be worth "tens of billions of dollars." A key point here is that Meta is turning to Nvidia for CPUs, the main processor in a computer, and will use these chips on their own in data centers -- this represents the first big move by Nvidia, a GPU specialist, in the CPU for data centers market. And the really good news here is that this deal shows the strength of Nvidia's leadership. Though Meta has developed its own chips and could also turn to other players for chips, the company instead has chosen Nvidia as the backbone of its AI infrastructure. Meta has put an enormous focus on AI, so it's clear this company is looking for the very best products to shepherd it along the path -- and once again, it's chosen Nvidia. So, what does this mean for investors? This doesn't suggest that other AI chip companies won't be successful. There is plenty of room for more than one company to generate significant revenue in this space. But this deal makes it clear that Meta's development of its own chips and even potential moves to buy chips from other companies aren't meant to replace Nvidia. And it's very likely that other Nvidia customers are taking the same route, diversifying supply while still relying on the AI giant. All of this should relieve worries about Nvidia losing market share -- and spur optimism about Nvidia's next chip launch later this year.

NVIDIA Stock Rises as Meta Commits to Millions of AI GPUs in Expanded Deal

Meta Boosts NVIDIA Partnership with Large AI Chip Deployment Across Data Centers NVIDIA stock rose after the company announced an expanded multiyear partnership with Meta Platforms that centers on large-scale AI infrastructure. The agreement commits Meta to deploy millions of NVIDIA GPUs, CPUs, and networking hardware across its global data centers. The companies framed the move as a long-term effort to support AI training and inference at an industrial scale. Meanwhile, NVIDIA shares closed at $184.97, up 1.20%, and moved higher following the announcement. Investors focused on the scale of Meta's commitment, which reinforces Nvidia's role as a primary supplier of advanced AI hardware. The companies did not disclose the financial value of the agreement.

Nvidia, Meta stocks rise after expanded AI infrastructure pact; AMD sinks By Investing.com

Investing.com -- Nvidia (NASDAQ:NVDA) stock rose 1.75% in after-hours trading Tuesday, while Meta Platforms (NASDAQ:META) shares gained 2% following the announcement of a multiyear strategic partnership to expand Meta's AI infrastructure using Nvidia technology. The collaboration will involve Meta building hyperscale data centers optimized for AI training and inference, deploying millions of Nvidia Blackwell and Rubin GPUs along with Nvidia CPUs. The partnership also includes integration of Nvidia's Spectrum-X Ethernet switches into Meta's network infrastructure. "No one deploys AI at Meta's scale -- integrating frontier research with industrial-scale infrastructure to power the world's largest personalization and recommendation systems for billions of users," said Jensen Huang, Nvidia's founder and CEO. The agreement represents the first large-scale deployment of Nvidia's Grace-only CPUs, which are expected to deliver significant performance-per-watt improvements in Meta's data centers. The companies are also collaborating on deploying Nvidia Vera CPUs, with potential large-scale implementation in 2027. Meta has additionally adopted Nvidia Confidential Computing for WhatsApp to enable AI capabilities while protecting user privacy, with plans to expand these privacy-enhanced features across Meta's portfolio. Advanced Micro Devices (NASDAQ:AMD) stock fell 3% after hours following the announcement, as the expanded partnership potentially reduces opportunities for AMD to gain market share in Meta's AI infrastructure. Arista Networks (NYSE: ANET) stock fell about 11%.