Meta signs multi-billion chip deal with Amazon AWS

Meta Platforms has struck a multi-year, multi-billion-dollar deal with Amazon Web Services to use its in-house Graviton central processing unit (CPU) chips, marking a significant expansion of Meta’s AI infrastructure strategy.

Under the agreement, Meta will deploy “tens of millions of cores” of AWS’s Graviton5 chips across its systems. While each chip contains 192 cores that can be distributed across different workloads, the scale of the deal highlights Meta’s growing demand for computing power to support artificial intelligence operations, News.Az reports, citing Reuters.

The chips are primarily used for running AI systems after models have been trained. Although graphics processing units (GPUs) remain essential for training large AI models, CPUs play a critical role in deployment and everyday inference tasks.

AWS has been developing its own CPU line since 2018, now in its fifth generation, and manufactures the chips through Taiwan Semiconductor Manufacturing Company. The company says the custom design helps reduce costs, which are then passed on to customers.

“We pass that savings on to the customers,” said AWS executive Nafea Bshara, noting that the Meta agreement will span several years and be worth billions of dollars.

The deal reflects a broader shift in the semiconductor market, where demand driven by AI workloads is reshaping pricing and chip strategy. CPU pricing has recently risen as demand increases, with companies like Intel reporting renewed momentum in the segment.

Meta has been aggressively expanding its AI infrastructure, previously signing major chip supply agreements with Nvidia and AMD, while also collaborating with Arm Holdings on CPU development.

Meta said the move is part of a broader strategy to diversify its compute sources as AI ambitions scale rapidly.

As global tech firms race to secure computing capacity, the deal underscores how cloud providers and social media giants are becoming increasingly intertwined in the race to power the next generation of artificial intelligence.

News.Az 

By Aysel Mammadzada