Meta Expands Partnership with Nvidia for AI Data Centers

Meta Platforms, Inc. has entered into a significant partnership with Nvidia to utilize millions of Nvidia chips in its artificial intelligence (AI) data centers. This agreement, announced on February 17, 2026, includes the deployment of Nvidia's new standalone central processing units (CPUs) and next-generation Vera Rubin systems. Meta CEO Mark Zuckerberg emphasized that this expanded collaboration aligns with the company's vision to "deliver personal superintelligence to everyone in the world," a goal he articulated in July 2025. While the financial specifics of the deal remain undisclosed, analysts estimate its value to be in the tens of billions of dollars.

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Meta's relationship with Nvidia is longstanding, dating back over a decade during which Meta has utilized Nvidia's graphics processing units (GPUs). However, this latest agreement represents a substantial escalation in their collaboration, marking the first large-scale deployment of Nvidia's Grace CPUs as standalone chips in Meta's data centers. This approach is a departure from previous configurations where CPUs were integrated with GPUs in server setups.

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The partnership is expected to significantly bolster Meta's AI capabilities. According to chip analyst Ben Bajarin from Creative Strategies, a considerable portion of Meta's capital expenditures, projected at up to $135 billion for AI in 2026, will likely be allocated towards this Nvidia initiative. The introduction of standalone CPUs is particularly noteworthy, as they are designed to handle inference workloads and support advanced AI applications.

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Following the announcement, shares of both Meta and Nvidia experienced gains during extended trading hours, while Advanced Micro Devices (AMD) saw a decline of approximately 4%. This market response reflects investor optimism regarding the potential of the partnership to enhance Meta's technological infrastructure and competitive edge in the AI sector.

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Despite the positive reception from investors, some analysts express caution regarding the financial implications of such a massive investment in AI infrastructure. Concerns have been raised about the sustainability of Meta's aggressive spending strategy, particularly in light of fluctuating market conditions and the competitive landscape in the AI industry.

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• "The deal is certainly in the tens of billions of dollars." — Ben Bajarin, Chip Analyst, Creative Strategies

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• "They're really designed to run those inference workloads, run those agentic workloads." — Ben Bajarin, Chip Analyst, Creative Strategies

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Meta plans to deploy the next-generation Vera CPUs by 2027, indicating a long-term commitment to enhancing its AI capabilities through this partnership with Nvidia. As the collaboration progresses, further developments are anticipated in both companies' strategies and market positioning within the AI sector.

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