Nvidia to Supply Millions of Processors to Meta Platforms in Historic Alliance

Companies Nvidia and Meta Platforms announced an unprecedented cooperation that aims to revolutionize computing infrastructure for artificial intelligence. Under the contract, which analysts estimate to be worth nearly $50 billion, Meta will purchase millions of chips, including the latest Blackwell units and the future generation named Rubin. Importantly, the agreement covers not only GPU accelerators, but also Nvidia's proprietary central processors from the Grace and Vera series. This move is interpreted as a direct attack on the current dominance of Intel and AMD in the server market. The scale of the investment reflects a global trend where the largest tech players, 'Hyperscalers,' plan to spend a total of over $600 billion in 2026 on data center development. Meta intends to use the new computing power, among other things, to deploy advanced AI features in the WhatsApp messenger, while simultaneously employing Confidential Computing technology. This will provide a higher level of security and privacy for users when interacting with personal digital assistants. Context: The semiconductor sector is currently undergoing the biggest transformation since the invention of the microprocessor in 1971 by Intel. The shift from classical x86 architecture to systems optimized for AI is changing the balance of power in the global digital economy. In financial markets, this news sparked euphoria around Nvidia's stock, bringing its market capitalization close to $5 trillion. At the same time, AMD shares suffered, losing about 5% of their value, due to investor concerns about losing market share to the Meta-Nvidia duopoly. Meanwhile, other entities like Microsoft boast about achieving climate goals, meeting 100% of their data center demand with renewable energy, which aims to mitigate criticism regarding the energy intensity of the new technology. Quote from Mandeep Singh: "This agreement helps Meta secure the supply chain in the face of growing demand and competition, while setting a new standard for performance per watt of energy." Bar chart title: "Big Tech Investments in AI Infrastructure (2026 forecast)" unit: "billion USD" Meta: 150, Microsoft: 165, Amazon: 140, Alphabet: 145 Key figure value: "$50 billion" estimated value of the Meta and Nvidia contract Comparison title: "Meta System Architecture" [{"aspect": "Main CPU supplier", "before": "Intel / AMD (x86)", "after": "Nvidia (Grace/Vera)"}, {"aspect": "GPU purchase scale", "before": "Thousands of units", "after": "Millions of units"}] Poll question: "Is Nvidia's dominance in the AI processor market beneficial for innovation?" ["Yes, it accelerates technology development", "No, lack of competition will raise prices", "Hard to assess"] Bias left: "Liberal media emphasize technological progress and Meta's investment in WhatsApp user data security." right: "Conservative media focus on the threat to market competition and the enormous cost of building AI infrastructure."