"Driving the news: Meta will buy millions of chips from Nvidia, ranging from standalone Grace CPUs to next-gen Blackwell GPUs and upcoming Vera Rubin systems, to use across its U.S. data center buildout. This makes Meta the first Big Tech firm to commit to buying standalone central processing units from Nvidia, which are used to run AI rather than train AI. This signals a shift toward inference over training, with the latter typically requiring more intense and expensive general processing units, or GPUs"
"Between the lines: Meta is locking in scarce next-generation compute at a time when Nvidia's Blackwell GPUs are back-ordered and rivals are scrambling for supply. Zoom out: It's a signal that there's still strong demand for compute power amid the AI buildout. Hyperscalers - the companies behind the largest data center buildouts - are on track to spend $650 billion this year."
"Follow the money: "The question of why Meta [is] deploying Nvidia's CPUs at scale is the most interesting thing in this announcement," Ben Bajarin, chief executive and principal analyst at tech consultancy Creative Strategies, told The Financial Times. Meta is expected to spend about $135 billion on its AI ambitions this year, a number that's expected to continue going up."
Meta will buy millions of Nvidia chips, including standalone Grace CPUs, next-generation Blackwell GPUs and upcoming Vera Rubin systems for U.S. data centers. Meta becomes the first Big Tech firm to commit to purchasing standalone Nvidia CPUs, which are used primarily to run AI workloads rather than to train models. The move signals a shift toward inference-focused compute while Nvidia's Blackwell GPUs are back-ordered and competitors scramble for supply. Hyperscalers are projected to spend $650 billion this year on data center buildouts, sustaining strong demand for high-end chips and benefiting Nvidia. Meta's AI spending is expected to reach about $135 billion this year amid competition from in-house chips and alternative TPU options.
Read at Axios
Unable to calculate read time
Collection
[
|
...
]