TLDR
- Nvidia and Meta expanded their multiyear AI chip partnership, with Meta deploying millions of Blackwell and Rubin GPUs and CPUs.
- No deal value was disclosed, but HSBC pegs a single GPU rack at ~$3M, with Rubin hardware priced ~40% higher.
- Meta’s move to Nvidia’s CPU servers threatens Intel and AMD’s foothold in its data centers.
- The deal reduces fears of Meta shifting to Google’s TPUs, a key concern weighing on Nvidia’s stock.
- Arista Networks fell 3.2% after-hours after Meta chose Nvidia’s Spectrum-X networking switches over Arista’s products.
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 deploys AI at a scale no other company matches, while Meta CEO Mark Zuckerberg said the expanded deal would help build clusters 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 Threat Fades
The deal carries extra weight given what was reported just months ago. In November, The Information said Meta was in talks with Google to use its TPU chips — designed with Broadcom — for future AI workloads. That report had been a drag on Nvidia’s stock ever since.
This partnership largely puts that concern to rest, for now.
Nvidia stock is still down over 1% year to date. AMD has fallen more than 5% in the same stretch. 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 Face New Pressure
Meta is also rolling out Nvidia’s Grace CPU-only servers, with Vera CPU-only systems planned for 2027. These servers handle tasks currently managed by Intel and AMD chips, putting both companies in a difficult spot as Meta leans further into the Nvidia ecosystem.
Meta will also integrate Nvidia’s Confidential Computing feature into WhatsApp, enabling private data processing through Nvidia GPUs. Additional chip capacity will come via Nvidia Cloud Partners, including CoreWeave and Crusoe.
Arista Networks Takes a Hit
Arista Networks dropped 3.2% in after-hours trading after Meta said it would deploy Nvidia’s Spectrum-X Ethernet switches — a direct blow to Arista, which counts Meta as a major client.
Nvidia closed Tuesday at $184.97, up 1.20%, before adding another 1.51% in overnight trading to reach $187.77.
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