Nvidia to sell Meta $50 billion worth of chips in a multi-year deal
Nvidia confirmed on Tuesday that it has entered into a multiyear agreement to supply Meta Platforms, the owner of Facebook and Instagram, with millions of its existing and upcoming AI chips. According to reports, the deal covers Nvidia’s AI accelerators and central processing units (CPUs), intensifying competition with the two companies that have long dominated the field: Intel and Advanced Micro Devices (AMD).
Although Nvidia did not reveal the financial terms of the agreement, Reuters reported that analysts value the deal at $50 billion, making it one of the largest of its kind. The chip maker confirmed that the arrangement includes its current Blackwell chips and its next-generation Rubin AI chips. The contract also covers standalone deployments of its Grace and Vera central processors.
The Grace and Vera processors are built on technology from ARM and were first introduced in 2023 as companion chips to Nvidia’s AI hardware. However, Tuesday’s announcement suggests that Nvidia is broadening the role of these processors beyond supporting AI accelerators. The company is positioning them for emerging applications such as operating AI agents, as well as for more conventional enterprise uses, including database management and other routine technical workloads.
The announcement comes as Meta advances its in-house AI chip development. The social media company is also reportedly in talks with Google about potentially leveraging Google’s Tensor Processing Units, known as TPUs, for certain AI-related tasks.
Nvidia does not publicly break down revenue sources, but analysts widely consider Meta to be one of four major customers that together accounted for 61% of Nvidia’s revenue in the latest fiscal quarter.
