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New Albany Today
By the People, for the People
Meta Expands AI Chip Deal with Nvidia, Raising Questions About In-House Hardware
The multi-billion dollar agreement includes next-gen Vera Rubin GPUs and Grace CPUs, signaling Meta's deepening partnership with Nvidia.
Published on Feb. 20, 2026
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Meta Platforms Inc. has agreed to a new multi-billion dollar deal with Nvidia Corp. to purchase millions of its next-generation Vera Rubin graphics processing units and Grace central processing units to fuel the company's artificial intelligence ambitions. The expanded partnership suggests Meta is doubling down on Nvidia's hardware, even as it has been developing its own in-house AI chips.
Why it matters
The deal highlights Meta's reliance on Nvidia's chips for its AI infrastructure, raising questions about the progress of its own chip development efforts. Meta has committed to investing heavily in AI, including building 26 new data centers in the U.S. and abroad, and this agreement ensures Nvidia will be a key supplier for those plans.
The details
Under the new deal, Meta will be the first company to deploy Nvidia's Grace CPUs as standalone chips, rather than in tandem with GPUs as is typical. This suggests Meta is leaning heavily on Nvidia's full stack of AI hardware. The agreement also includes Nvidia's Spectrum-X Ethernet switches and InfiniBand interconnect technologies to link GPU clusters. While Meta has been diversifying its chip suppliers, including AMD and potentially Google's TPUs, this Nvidia deal is a major commitment.
- The new deal was announced on February 17, 2026.
- Meta plans to start deploying Nvidia's next-generation Vera CPUs beginning in 2027.
The players
Meta Platforms Inc.
The parent company of Facebook, Instagram, and WhatsApp, which is making major investments in artificial intelligence infrastructure.
Nvidia Corp.
A leading manufacturer of graphics processing units (GPUs) and other AI-focused chips, which has become a key supplier to Meta.
Mark Zuckerberg
The CEO of Meta, who has stated the company's vision of 'delivering personal superintelligence to everyone in the world' through its AI efforts.
Ben Bajarin
A chip analyst at Creative Strategies, who commented on the significance of Meta deploying Nvidia's Grace CPUs as standalone chips.
Taiwan Semiconductor Manufacturing Co. (TSMC)
The semiconductor manufacturer that is reportedly working with Meta to produce the company's in-house AI chips.
What they’re saying
“We must not let individuals continue to damage private property in San Francisco.”
— Robert Jenkins, San Francisco resident (San Francisco Chronicle)
What’s next
Meta's in-house AI chip development efforts, including its MTIA chip, will be closely watched to see if the company can reduce its reliance on external suppliers like Nvidia.
The takeaway
Meta's expanded partnership with Nvidia, including the use of standalone Grace CPUs, underscores the company's heavy dependence on external chip suppliers for its ambitious AI infrastructure plans, even as it continues to develop its own in-house chip solutions.
