TLDR
- Nvidia and Meta expanded their multiyear AI chip partnership, covering millions of Blackwell and Rubin GPUs and CPUs.
- No deal value was disclosed, but HSBC estimates a single GPU rack at ~$3M, with Rubin hardware priced ~40% higher.
- Meta’s shift to Nvidia CPU servers puts pressure on Intel and AMD’s presence in its data centers.
- The deal reduces fears of Meta switching to Google’s TPUs, which had weighed on Nvidia’s stock for months.
- Arista Networks fell 3.2% after-hours after Meta opted for Nvidia’s Spectrum-X networking switches.
Nvidia and Meta announced a major expansion of their AI chip partnership late Tuesday, with Meta committing to deploy millions of Nvidia’s Blackwell and Rubin GPUs, CPUs, and networking products across its data centers.
The agreement covers both model training and inference workloads. Nvidia CEO Jensen Huang said Meta operates at a scale no other company matches. Meta CEO Mark Zuckerberg said the deal would help build infrastructure using the Vera Rubin platform to “deliver personal superintelligence to everyone in the world.”
No financial terms were disclosed. HSBC estimates a single GB300 NVL72 rack — housing 72 GPUs — costs around $3 million. Susquehanna analyst Christopher Rolland estimates the upcoming Rubin hardware will carry an average selling price roughly 40% higher. Meta confirmed it will deploy GB300-based systems.
The Google TPU Concern Takes a Back Seat
This deal carries extra weight given what was reported just months ago. In November, The Information said Meta was exploring Google’s TPU chips — developed with Broadcom — for future AI workloads. That report had been hanging over Nvidia’s stock ever since.
This partnership largely puts that concern aside, at least for now.
Nvidia stock is still down over 1% year to date. AMD has fallen more than 5% in the same period. Across the AI sector, stocks have struggled in early 2026, with Microsoft down more than 17% since January 1 and Meta off around 3.3%.
Intel and AMD Feel the Heat
Meta is rolling out Nvidia’s Grace CPU-only servers, with Vera CPU-only systems planned for 2027. These servers take on tasks currently handled by Intel and AMD chips, pushing both further out of Meta’s infrastructure plans.
Meta will also use Nvidia’s Confidential Computing feature inside WhatsApp, enabling private data processing through Nvidia GPUs. Additional chip capacity will be accessed through Nvidia Cloud Partners, including CoreWeave and Crusoe.
Arista Networks Drops 3.2% After-Hours
Arista Networks fell 3.2% in after-hours trading after Meta confirmed it would deploy Nvidia’s Spectrum-X Ethernet switches. Arista counts Meta as one of its largest clients, making the switch a direct hit to its business.
Nvidia closed Tuesday at $184.97, up 1.20%, before gaining another 1.51% in overnight trading to reach $187.77.
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