TLDR
- Tesla adds 350 jobs in Buffalo as lawmakers debate $1B subsidy.
- Nvidia secures multi-generational AI chip deal with Meta Platforms.
- Tesla meets job targets but faces political pressure on subsidies.
- Nvidia’s partnership with Meta enhances AI hardware for global data centers.
- Meta diversifies AI chip suppliers, expanding reliance on Nvidia’s tech.
NVIDIA (NVDA) shares advanced after the company confirmed a broader supply agreement with Meta Platforms covering multiple AI chip generations. Nvidia closed at $184.97, gaining $2.19, or 1.20%, during the session. The update reinforced Nvidia’s position in large-scale AI infrastructure as major technology groups expand data center capacity.
Nvidia Strengthens AI Infrastructure Role With Expanded Meta Agreement
Nvidia and Meta Platforms expanded a multiyear, multi-generational partnership focused on AI hardware deployment. The agreement covers Nvidia’s Blackwell GPUs and its upcoming Rubin AI chips. It also includes Grace and Vera central processing units for data center use.
Meta plans to install the chips across its global data centers for training and running AI models. The deployment will support recommendation systems, advertising tools, and generative AI services. Nvidia will also supply networking products that connect large computing clusters.
Meta will access Nvidia hardware through certified cloud partners. These partners include CoreWeave and Crusoe, which rent Nvidia-powered infrastructure to enterprises. Nvidia did not disclose the financial value of the agreement.
Meta Expands Data Center Capacity as Nvidia Defends Market Position
Meta will roll out large-scale Grace CPU-only servers as part of the agreement. The company also intends to introduce Vera CPU-only systems beginning in 2027. These systems will operate without GPUs and resemble traditional server configurations.
This move places pressure on long-standing CPU suppliers such as Intel and AMD. Both companies have dominated the server processor market for decades. However, Meta continues to diversify suppliers as AI workloads expand.
Meta will also integrate Nvidia’s Confidential Computing technology into WhatsApp services. The feature enables secure processing of private data using Nvidia GPUs. As a result, Meta aims to enhance privacy protections while scaling AI tools.
AI Spending Debate Shapes Sector Performance in 2026
AI-related equities have faced pressure since the start of 2026. Meta shares have declined about 3.3% this year. Microsoft has dropped more than 17% since January 1.
Chipmakers have also cooled as companies assess long-term hardware requirements. Some technology firms question whether general-purpose GPUs will power all AI workloads. Others continue developing specialized processors for internal use.
Amazon, Google, and Microsoft have introduced updated in-house AI chips. In November, reports indicated that Meta discussed potential TPU usage with Google. Even so, the expanded Nvidia agreement signals that Meta maintains strong reliance on Nvidia’s platform.
Nvidia remains one of the primary suppliers of advanced AI accelerators worldwide. Meta ranks among its largest customers and contributes significant revenue. Therefore, the latest deal underscores Nvidia’s continued relevance despite rising competition.
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