Meta Platforms commits millions of AI GPUs from Nvidia in expanded infrastructure partnership
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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
[2]
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
[3]
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
[4]
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
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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,
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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
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Meta Platforms and Nvidia announced an expanded long-term AI infrastructure partnership that commits Meta to deploying millions of Nvidia GPUs, CPUs, and networking hardware across its global data centers. The deal reinforces Nvidia's position in the AI chip market as Meta pursues its goal of delivering personal superintelligence, while raising questions about chip supply allocation for competitors attempting to reduce Nvidia dependence.
Meta Platforms Deepens Commitment to Nvidia's Full Stack
Meta Platforms and Nvidia have announced an expanded long-term AI infrastructure partnership that positions the chipmaker as the backbone of Meta's ambitious AI ambitions
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. Under the agreement, Meta will deploy millions of AI GPUs including Nvidia's next-generation Blackwell GPUs and Rubin platform chips across its data centers to optimize AI training and inference workloads1
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. The partnership extends beyond GPUs to include Nvidia's Arm-based Grace server CPUs, marking the chip giant's first major move into the CPU for data centers market as a standalone processor4
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Source: Motley Fool
Jensen Huang, Nvidia's founder and CEO, emphasized the depth of collaboration, stating the companies are engaging in "deep co-design across CPUs, GPUs, networking and software" to bring Nvidia's full stack to Meta's engineers
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. Mark Zuckerberg framed the partnership as critical to Meta's vision, saying it will help deliver "personal superintelligence to everyone in the world"1
. While the financial terms remain undisclosed, CNBC cited analysts estimating the deal could be worth tens of billions of dollars4
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Source: Benzinga
Capital Expenditure Surge Fuels AI Compute Race
Meta's commitment reflects a massive increase in capital expenditure, with the company on track to spend $115 billion to $135 billion in 2026—a 74% jump at the midpoint compared to last year
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. A substantial portion of this investment will flow toward purchasing AI accelerator chips from Nvidia and building advanced AI clusters using the Rubin platform1
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. Futurum Group CEO Daniel Newman characterized the AI compute race as a battle for maximum compute capacity, noting that Meta "will buy and build compute and Nvidia is core to its mission"1
.The partnership also encompasses Nvidia's Spectrum-X Ethernet platform for AI-scale networking and Confidential Computing technology to enhance WhatsApp's private messaging capabilities
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. Meta plans to create a unified architecture spanning on-premises data centers and Nvidia cloud partners deployments to simplify operations while maximizing performance3
.Supply Allocation Concerns Surface for Nvidia Competitors
CNBC's Jim Cramer warned that companies attempting to reduce reliance on Nvidia may face tighter supply allocation following Meta's expanded commitment
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. He suggested that those building their own chips "may have to worry about allocations," calling "the smugness toward NVDA by any and all tiresome"1
. The concern stems from Nvidia's Blackwell GPUs remaining back-ordered as Rubin chips enter production1
.While Meta develops in-house silicon and has explored alternatives including chips from Advanced Micro Devices (AMD), the deal demonstrates that diversification efforts aren't meant to replace Nvidia
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. Newman noted that Meta "will still buy AMD btw. It is AND not Or," indicating the company continues to diversify suppliers even as it strengthens its Nvidia partnership1
.Related Stories
Market Implications and Nvidia's Sustained Dominance in AI Chip Market
Nvidia stock prices rose 1.20%, closing at $184.97, while Meta shares gained 0.66% in after-hours trading following the announcement
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. The deal alleviates investor concerns about Nvidia losing market share to competitors and reinforces its position as the primary supplier of advanced AI hardware for large-scale AI training4
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Source: Analytics Insight
The partnership also benefits Nvidia's cloud partners, particularly Nebius Group, which already holds a $3 billion five-year contract with Meta
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. As Meta deploys systems through Nvidia cloud partners deployments, companies like Nebius stand to capture additional revenue from Meta's increased infrastructure spending2
. Analysts forecast Nebius revenue could jump to $3.4 billion in 2026 from $530 million in 2025, driven partly by Meta's infrastructure buildout2
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