Nvidia announced on Tuesday that it has signed a major multiyear agreement with Meta Platforms. Under the new deal, the chip giant will supply the social media company with millions of artificial intelligence chips. This includes both current technology and future processors, signaling that Nvidia is successfully encroaching on territory usually dominated by rivals like Intel and AMD.
While Nvidia kept the specific dollar amount quiet, the company confirmed the package covers a wide range of hardware. Meta will purchase Nvidia’s current “Blackwell” chips as well as the upcoming “Rubin” AI chips. Perhaps most notably, the agreement includes standalone installations of Nvidia’s “Grace” and “Vera” central processing units (CPUs).
This is a strategic win for Nvidia. Until recently, data centers largely relied on Intel or AMD for their central processors, while using Nvidia only for graphics units to handle AI tasks. By selling Meta on its Grace and Vera CPUs, Nvidia is proving it can power the entire computer, not just the AI accelerator.
Ian Buck, an executive at Nvidia, highlighted the strength of their new Vera processor. He described it as an excellent CPU designed specifically for the heavy data lifting required in modern data centers. Buck noted that Meta has already tested the Vera chips on some of its workloads, and the initial results look “very promising.”
For industry analysts, this announcement serves two purposes. First, it confirms that Meta remains one of Nvidia’s most important clients. Although Nvidia doesn’t list buyers by name in its earnings, analysts believe Meta is one of four massive companies that together made up 61% of Nvidia’s revenue last quarter.
Second, it shows that Nvidia isn’t just a one-trick pony relying solely on the AI boom. By getting a tech giant like Meta to commit to its CPUs, Nvidia is showing it can build the backbone of the next generation of data centers, putting serious pressure on its competitors.
