NVIDIA Corporation
NVIDIA said the agreement spans on-premises, cloud and AI infrastructure and will support Meta's long-term AI roadmap.
Meta will build hyperscale data centers optimized for both training and inference, enabling the large-scale deployment of NVIDIA CPUs and millions of NVIDIA Blackwell and Rubin GPUs. The companies will also integrate NVIDIA Spectrum-X Ethernet switches into Meta's Facebook Open Switching System platform.
Meta is expanding deployment of Arm-based NVIDIA Grace CPUs for data center production applications, marking the first large-scale Grace-only deployment. The companies are also collaborating on potential large-scale deployment of NVIDIA Vera CPUs beginning in 2027.
Meta will deploy NVIDIA GB300-based systems and create a unified architecture spanning on-premises data centers and NVIDIA Cloud Partner deployments. The company has also adopted NVIDIA Spectrum-X Ethernet networking across its infrastructure to deliver AI-scale networking with low-latency performance and improved operational and power efficiency.
In addition, Meta adopted NVIDIA Confidential Computing for WhatsApp private processing, enabling AI-powered capabilities while protecting user data.
"No one deploys AI at Meta's scale," said Jensen Huang, founder and CEO of NVIDIA. "Through deep codesign across CPUs, GPUs, networking and software, we are bringing the full NVIDIA platform to Meta's researchers and engineers as they build the foundation for the next AI frontier."
Fourth-Quarter Earnings Around The Corner
NVIDIA is expected to report fourth-quarter earnings on Feb. 25. The company is anticipated to report earnings per share of $1.52 and revenue of $65.65 billion. The company has beat estimates for revenue and earnings per share in four of the last four quarters. In its most recent quarter, report on Nov. 19, the company posted earnings per share of $1.30, beating the consensus estimate of $1.25 and revenue of $57.01 billion, beating the consensus estimate of $54.88 billion.
Investors should keep an eye on Nvidia's data center revenue, which has been a significant growth driver, particularly as demand for AI infrastructure surges. Additionally, watch for any updates on partnerships and contracts related to AI initiatives, especially in light of the recent $1 billion national AI initiative in India, which could impact future revenue streams. Lastly, monitor the adoption rates of Nvidia's AI chips, as increased sales in this segment will be crucial for sustaining growth.
NVIDIA Shares Rise Higher
NVDA Price Action: At the time of writing, NVIDIA shares are trading 1.83% higher at $188.27, according to data from Benzinga Pro.
