Nvidia secures multiyear chip deal with Meta

• The deal includes Nvidia's Blackwell and Rubin AI chips plus Grace and Vera CPUs based on Arm technology, marking Nvidia's push into markets traditionally dominated by Intel and AMD
• Analysts estimate the multiyear contract could be worth approximately $50 billion, with Meta believed to be among Nvidia's four largest customers
• Nvidia's Grace processors reportedly use half the power for common tasks like running databases, with the next-generation Vera showing 'very promising' results in Meta's testing

Nvidia Secures Major Multi-Year Chip Deal with Meta

Nvidia announced Tuesday it has signed a multi-year agreement to supply Meta Platforms with millions of AI chips and processors, though financial terms were not disclosed. Analysts estimate the deal could be valued at approximately $50 billion.

Deal Components:

The agreement encompasses Nvidia's current Blackwell AI chips and upcoming Rubin AI chips, plus standalone installations of Grace and Vera central processing units (CPUs). These ARM-based processors, introduced in 2023, will target emerging applications like AI agents and traditional data center tasks including database management.

Market Positioning:

Ian Buck, general manager of Nvidia's hyperscale unit, highlighted that Grace processors use half the power for common tasks like database operations, with further improvements expected in the next-generation Vera chips. Meta has already tested Vera workloads with promising results.

Competitive Landscape:

The deal positions Nvidia's CPUs as direct competitors to Intel and AMD in the data center processor market. This comes as Meta simultaneously develops proprietary AI chips and explores partnerships with Google for its TPU (Tensor Processing Unit) technology.

Strategic Significance:

While Nvidia hasn't disclosed Meta sales figures, Meta is believed to be among four customers representing significant revenue in Nvidia's most recent fiscal quarter. Industry analyst Moorhead suggests Nvidia publicized this deal to demonstrate retention of a major customer and showcase traction in the CPU market beyond its core GPU business.

The announcement signals Nvidia's aggressive expansion from AI accelerators into broader data center infrastructure, directly challenging established CPU manufacturers in enterprise computing markets.