In a major development for artificial intelligence infrastructure, Meta Platforms has entered into an expanded multi-year agreement with Nvidia to deploy millions of advanced AI chips across its data centers. The announcement, made on February 19, 2026, represents one of the largest AI hardware deployments to date and signals Meta's aggressive investment in computational resources for next-generation AI systems.
Comprehensive AI Hardware Deployment
The partnership encompasses multiple hardware platforms from Nvidia's portfolio. Meta will deploy millions of Nvidia's Blackwell and Rubin graphics processing units (GPUs), which are specifically designed for AI training and inference workloads. Additionally, the agreement includes significant deployment of Nvidia's Arm-based Grace central processing units (CPUs) and Spectrum-X Ethernet networking technology.
This marks a strategic expansion for Nvidia beyond its traditional GPU dominance into the CPU market, where Intel and Advanced Micro Devices have historically maintained strong positions in data center deployments. The Grace CPU deployment represents Nvidia's first major standalone CPU rollout with a hyperscale customer.
Strategic Infrastructure Development
According to company statements, Meta plans to build "hyperscale" data centers specifically optimized for AI workloads, powered by Nvidia's comprehensive hardware stack. The infrastructure will support both on-premises and cloud-based configurations, enabling Meta to scale its AI capabilities across multiple deployment environments.
Nvidia CEO Jensen Huang emphasized the significance of the partnership, stating, "No one deploys AI at Meta's scale," while highlighting what he described as "deep codesign" spanning chips, networking, and software layers. Meta CEO Mark Zuckerberg confirmed plans to build computing clusters using Nvidia's Vera Rubin platform to power upcoming AI systems.
Technical Innovations and Security Features
The collaboration includes development of servers that operate exclusively on CPUs, with both companies working together on a next-generation "Vera" CPU platform targeted for potential wider availability in 2027. Additionally, Meta will implement Nvidia's "confidential computing" technology on WhatsApp, designed to protect data during processing on servers, not just during storage or transmission.
Industry analysts note that the move into CPUs reflects evolving requirements driven by "agentic AI" software, which creates new demands for general-purpose processing capabilities even as GPUs continue to handle the majority of AI computation workloads.
Market Impact and Competitive Landscape
The announcement generated positive market reaction, with Nvidia shares closing 1.6% higher on Wednesday following the news, while Meta shares gained 0.6%. The broader U.S. equity market also closed in positive territory on the trading day.
The expanded partnership occurs amid intensifying competition in the AI hardware sector. While Nvidia seeks to provide comprehensive data center solutions encompassing GPUs, CPUs, and networking equipment, major technology companies are simultaneously developing their own custom chips and exploring alternative suppliers to diversify their AI infrastructure.
Financial and Implementation Details
Neither company disclosed specific financial terms of the agreement or provided detailed timelines for equipment delivery. The lack of transparency regarding deployment schedules reflects the strategic nature of the partnership and the competitive sensitivity surrounding AI infrastructure investments.
The collaboration represents a significant commitment from both companies as the race for AI computational resources intensifies across the technology industry. With AI models growing increasingly complex and resource-intensive, securing reliable hardware supply chains has become a critical strategic priority for major technology firms.
