Meta’s new deal with Nvidia buys up millions of AI chips
Source: The Verge
Deal Overview
Meta has struck a multiyear deal to expand its data centers with millions of Nvidia’s Grace and Vera CPUs and Blackwell and Rubin GPUs. While Meta has long used Nvidia hardware for its AI products, this agreement “represents the first large‑scale Nvidia Grace‑only deployment,” which Nvidia says will deliver “significant performance‑per‑watt improvements in Meta’s data centers.” The deal also includes plans to add Nvidia’s next‑generation Vera CPUs to Meta’s data centers in 2027.
Meta’s In‑House Chip Development
Meta is also developing its own in‑house chips for running AI models, but according to the Financial Times it has encountered “technical challenges and rollout delays” with that strategy.
Nvidia’s Market Context
Nvidia faces concerns about depreciation and chip‑back loans used to finance AI buildouts, as well as mounting competitive pressure. CNBC noted that Nvidia’s stock fell 4 % after a November report suggested Meta was considering Google’s Tensor chips for AI. Late last year, AMD announced chip arrangements with both OpenAI and Oracle.
Financial Terms & AI Spending
The financial terms of the Nvidia‑Meta deal were not disclosed. However, this year’s AI spending by Meta, Microsoft, Google, and Amazon is estimated to exceed the cost of the entire Apollo space program.
By Stevie Bonifield – Feb 18 2026
References
- Meta builds AI infrastructure with Nvidia – Nvidia News
- Meta reportedly working on a new AI chip it plans to launch this year – The Verge
- Financial Times article on Meta’s chip challenges
- Concerns about Nvidia chip‑back loans
- CNBC report on Nvidia stock dip
- AMD agreements with OpenAI and Oracle:
- AI spending vs. Apollo program