Nvidia has inked a significant multiyear deal with Meta Platforms, committing to supply the social media giant with millions of its current and next-generation artificial intelligence chips. The agreement, announced Tuesday, extends beyond Nvidia’s flagship AI accelerators to include its line of central processing units (CPUs), which directly compete with offerings from Intel and AMD.
While the financial terms of the deal were not disclosed, Nvidia confirmed it encompasses its current Blackwell chips as well as the forthcoming Rubin AI processors. Crucially, the agreement also features standalone installations of its Grace and Vera central processors.
Nvidia first introduced these Arm-based CPUs in 2023 as companion pieces to its powerful AI hardware. However, Tuesday’s announcement signals a strategic pivot: the company is now aggressively pushing these processors for broader applications, including emerging fields like running AI agents and more routine technical tasks, such as powering databases.
The deal arrives at a pivotal moment for Meta, which is not only developing its own in-house AI chips but is also in active discussions with Google about utilizing that company’s Tensor Processing Units (TPUs) for its AI workloads. Securing a massive supply deal with Nvidia suggests Meta is hedging its bets, ensuring access to the industry’s most sought-after hardware even as it explores alternatives.
Ian Buck, Nvidia’s general manager of hyperscale and high-performance computing, highlighted the efficiency gains of their CPUs. He stated that the Grace processors have demonstrated the ability to use half the power for common tasks like running databases, with even more significant improvements expected from the next-generation Vera chips.
“It actually continues down that path and makes it an excellent data center-only CPU for those high-intensity data processing back-end operations,” Buck explained. “Meta has already had a chance to get on Vera and run some of those workloads. And the results look very promising.”
While Nvidia has never officially broken out its sales figures to Meta, the tech giant is widely considered to be one of four customers that together accounted for a staggering 61% of Nvidia’s revenue in its most recent fiscal quarter. Analyst Moorhead noted that by publicly highlighting this deal, Nvidia is not only reassuring the market that it has retained this massive business with Meta but is also showcasing the growing traction and viability of its central processor chips in a market long dominated by Intel and AMD.
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