Nvidia and Meta Expand AI Partnership with Multi-Year GPU Deal

Nvidia and Meta have cemented a significant expansion of their existing partnership, with Meta committing to deploy millions of Nvidia's Blackwell and Rubin GPUs across its data centers. The agreement includes CPUs and networking products, though financial terms remain undisclosed. Analysts estimate individual GPU racks at $3 million, with Rubin hardware priced approximately 40% higher.

The deal alleviates market concerns about Meta potentially shifting to Google's TPUs, a MOVE that had previously pressured Nvidia's stock. Notably, Meta will also implement Nvidia's Grace and Vera CPU-only servers, potentially disrupting Intel and AMD's presence in its infrastructure. Arista Networks shares dipped 3.2% following Meta's announcement to adopt Nvidia's Spectrum-X Ethernet switches.

Nvidia CEO Jensen Huang emphasized Meta's unparalleled scale in AI deployment, highlighting co-design efforts across CPUs, GPUs, and networking systems. The partnership covers both AI model training and inference phases, underscoring Meta's long-term commitment to Nvidia's ecosystem.