Observed Signal · Feb 17, 2026 · Partnership · Source: CNBC Technology · Impact: 5/5 · Sentiment: Positive
Meta Boosts AI Power with Nvidia Chip Partnership
Meta announced an expanded multiyear partnership with Nvidia to use millions of Nvidia AI chips across its data-center build-out, including Nvidia’s standalone Grace CPUs and next-generation Vera Rubin systems. Financial terms were not disclosed, though analysts say the agreement likely runs to the tens of billions and aligns with Meta’s planned AI capex (up to $135 billion in 2026) and a broader $600 billion U.S. data-center commitment through 2028. The deal includes Nvidia’s Spectrum‑X Ethernet switches and security features (to be used in products such as WhatsApp), and marks the first large-scale deployment of Grace CPUs as standalone data‑center components. Meta and Nvidia engineering teams will collaborate on co‑design and model optimization; Meta plans to deploy next‑generation Vera Rubin systems in 2027. The announcement affected markets: Meta and Nvidia shares rose in extended trading while AMD shares fell about 4%.
Major platform (Meta) announced a large-scale infrastructure partnership with Nvidia that secures significant AI compute and networking capacity, influences chip supply dynamics, and materially affects AI-capex deployment plans across data centers.
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Key Takeaways & Evidence Grounding
- Meta will use millions of Nvidia chips in its AI data centers, including standalone Grace CPUs and next‑generation Vera Rubin systems.
- Meta and Nvidia will collaborate on deep co‑design to optimize AI models and infrastructure.
- The deal includes Nvidia networking technology (Spectrum‑X Ethernet switches) and Nvidia security capabilities for AI features such as on WhatsApp.
- Financial terms were not disclosed; analysts estimate the deal is in the tens of billions of dollars and aligns with Meta’s $135 billion AI capex plan for 2026 and $600 billion U.S. data‑center commitment through 2028.
- Meta’s announcement lifted Meta and Nvidia shares in extended trading; Advanced Micro Devices (AMD) stock fell about 4% on the news.
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Meta Expands AI Chip Strategy with AMD Partnership
Meta has signed a multiyear agreement with Advanced Micro Devices (AMD) to deploy up to 6 gigawatts of AMD GPUs and AI‑optimized CPUs in its AI data centers. Early shipments of MI450 GPUs in AMD’s Helios rack servers are expected later this year. The deal includes a performance‑based warrant enabling Meta to acquire 160 million AMD shares (about 10% of the company) with tranches that vest as deployments reach 1GW up to 6GW and subject to stock‑price and technical/commercial milestones. The announcement follows Meta’s recent expanded agreement with Nvidia to use millions of Nvidia processors. AMD CEO Lisa Su and analyst Ben Bajarin were quoted; AMD stock rose on the news.
Meta to Use Hundreds of Thousands of AWS Graviton Chips
Meta Platforms has agreed to a multi-year deal to run large portions of its AI workloads on Amazon Web Services' Graviton ARM‑based CPUs. The arrangement, reported to run at least three years, will make Meta a top‑five Graviton customer and shifts part of Meta’s inference and agentic workloads onto AWS to reduce compute costs. CNBC notes the announcement helped lift Amazon shares and highlights AWS’s broader chip portfolio — Graviton CPUs, Trainium accelerators and the Nitro EC2 NIC — as an alternative to Nvidia GPUs for certain real‑world AI use cases. Amazon CEO Andy Jassy said the company’s chips business (Graviton, Trainium, Nitro) has an annual revenue run rate over $20 billion and is growing at triple‑digit percentages year‑over‑year. The deal reinforces hyperscaler competition to supply AI infrastructure and validates AWS’s strategy to compete as both cloud and chip provider.
Meta's $100B AMD Chip Deal Fuels AI Ambitions
Meta announced a multiyear agreement to purchase up to $100 billion worth of AMD chips, a volume estimated to drive roughly six gigawatts of data center power demand. As part of the deal AMD issued Meta a performance-based warrant for up to 160 million shares (about 10% of AMD) exercisable at $0.01 per share and structured to vest against milestones; the final tranche is conditional on AMD’s share price reaching $600. Meta will buy AMD’s MI540 GPUs and its latest-generation CPUs. The partnership is positioned as part of Meta’s compute diversification strategy alongside recent Nvidia deals and its ongoing investments in U.S. data centers and AI infrastructure as it pursues what CEO Mark Zuckerberg calls “personal superintelligence.”
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