Meta orders chips from Nvidia for tens of billions of US dollars
Nvidia and Meta have agreed on a partnership, with the Facebook group receiving GPUs and CPUs of various generations for tens of billions of US dollars.
(Image: Konstantin Savusia/Shutterstock.com)
Meta may spend tens of billions of US dollars on chips from Nvidia in the coming years. The two US corporations have now concluded a corresponding contract, they announced together. Both speak of a "long-term partnership".
As recently as November, reports about multi-billion dollar investment plans by Meta in AI chips from Google had temporarily caused Nvidia's stock to drop, but so far there are no further details. According to Nvidia, Meta will buy "millions" of semiconductors from the current Blackwell and the upcoming Rubin architectures. The total value of the contract has not been made public, according to Reuters it could be 50 billion US dollars.
Announcement shortly before the presentation of business figures
Nobody builds AI infrastructure on the scale that Meta does, the US corporation claims now. For its own data centers, it has therefore also ordered CPUs from Nvidia and Ethernet switches on a large scale. At the same time, Nvidia's technology is intended to ensure that performance per watt is significantly increased. Power consumption of the huge data centers is becoming an increasingly big issue in the USA, with plans in some states to curb construction activities. Meta CEO Mark Zuckerberg now promises that with the ordered Nvidia technology, they will deliver "personal superintelligence to every person in the world".
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By announcing this a week before presenting its business figures, Nvidia is now making it clear that business continues. At the end of November, a report about alleged negotiations between Meta and Google caused a stir. It stated that the Facebook group could spend billions on Google's TPU chips and use them in its own data centers. These have so far only been used by Google itself, but can be rented. By selling to data center operators like Meta, Google would have entered into direct competition with Nvidia. However, this has not yet been confirmed, and Nvidia obviously does not want to cede this business so easily.
(mho)
