Key Highlights
- Amazon and Meta finalized a multibillion-dollar partnership spanning multiple years for AWS Graviton CPU deployment in AI applications.
- The agreement encompasses deployment of tens of millions of Graviton cores primarily across U.S. locations throughout a three-to-five-year period.
- Following the announcement, Meta shares increased 0.6% while Amazon gained 1.4% during premarket sessions.
- Amazon joins Meta’s diverse chip provider ecosystem alongside Nvidia, Broadcom, and AMD.
- Meta ranks among the top five AWS Graviton clients under this partnership.
Meta and Amazon have finalized a multibillion-dollar partnership that will deploy tens of millions of Amazon Web Services’ Graviton CPU cores for Meta’s expanding AI agent infrastructure.
According to Nafea Bshara, Amazon VP and Annapurna Labs co-founder (AWS’s internal chip division), the partnership spans three to five years. The majority of these Graviton cores will be positioned across United States data centers.
Market response showed Amazon shares rising 1.4% in premarket activity, with Meta advancing 0.6% following the disclosure.
This partnership focuses exclusively on AWS Graviton central processing units rather than graphics processing units. While GPUs dominated AI development headlines, CPUs are experiencing renewed importance.
AI agents are driving renewed CPU demand. These processors manage specific operations and channel workloads to GPUs, creating a synergistic relationship between both processor categories for diverse AI applications.
CPUs also serve critical functions during the “post-training” stage of large language models, where base models undergo refinement for targeted objectives.
Meta selected Amazon’s Graviton5, built on 3-nanometer technology, based on its cost-efficiency balance. “Meta has access to so many options from the supply side. But they chose Graviton5,” Bshara stated.
Diversification in Meta’s Chip Sourcing
This partnership expands Meta’s chip supplier network, which currently features Nvidia, Broadcom, AMD, and Arm Holdings. Meta has consistently emphasized avoiding dependence on a singular chip platform.
“No single chip architecture can efficiently serve every computational task,” Meta declared in an official statement accompanying the news.
Initial implementation involves tens of millions of Graviton cores, with expansion capacity aligned to Meta’s evolving AI requirements.
AI Expansion and Workforce Restructuring at Meta
Meta’s commitment to artificial intelligence continues accelerating. The company completed its acquisition of AI startup Manus in December for over $2 billion. Manus develops AI agents designed for sophisticated task execution, further increasing CPU requirements.
To finance its AI infrastructure expansion, Meta simultaneously announced Thursday it will reduce its workforce by approximately 10%—eliminating roughly 8,000 positions—in May.
Meta unveiled Muse Spark, its first new AI model in twelve months, earlier this month, with additional releases planned.
The collaboration between Meta and AWS originated around 2016, though previous engagement centered on cloud infrastructure, the Bedrock platform, and GPU cluster access. This agreement represents a significant shift toward custom silicon integration.
For AWS, securing Meta as a major Graviton client validates its chip development strategy. Days earlier, Amazon revealed a $5 billion investment in Anthropic, another partnership involving tens of millions of Graviton CPU cores.
AWS initiated custom chip development before 2018, launching the original Graviton processor on Arm architecture.
Bshara verified that this agreement positions Meta within AWS’s top five Graviton customers.
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