--- title: "Meta Just Made a Striking Move. And It's Excellent News for Nvidia." description: "Meta Platforms has signed a significant deal with Nvidia to purchase millions of chips, including GPUs and CPUs, valued at potentially tens of billions of dollars. This move highlights Meta's reliance" type: "news" locale: "en" url: "https://longbridge.com/en/news/276404235.md" published_at: "2026-02-20T02:32:19.000Z" --- # Meta Just Made a Striking Move. And It's Excellent News for Nvidia. > Meta Platforms has signed a significant deal with Nvidia to purchase millions of chips, including GPUs and CPUs, valued at potentially tens of billions of dollars. This move highlights Meta's reliance on Nvidia for its AI infrastructure, despite its own chip development. The agreement alleviates investor concerns about Nvidia losing market share to competitors and reinforces Nvidia's position as a leader in the AI chip market. The deal also marks Nvidia's entry into the CPU market for data centers, showcasing its commitment to innovation and maintaining its competitive edge. **Meta Platforms** (META +0.21%) has been one of the most noteworthy names in the artificial intelligence (AI) space over the past couple of years. The company, known for its social media apps, has spoken of its intentions to pursue AI and even bring superintelligence to people around the world. As part of this, Meta has been spending billions of dollars to build out data centers, create large language models, and offer AI features to app users and its advertising customers. What's the relationship between Meta and AI chip leader **Nvidia** (NVDA 0.04%)? Meta is one of Nvidia's biggest customers, buying the tech giant's graphics processing units (GPUs) to power key tasks such as the training of its AI models. Though Meta is a significant Nvidia customer, the company has also turned to rival chip designer **Advanced Micro Devices** in the past, and Meta even makes its own chips. Meta isn't alone. Some of Nvidia's other customers -- **Amazon**, for example -- operate in the same way: They seek chips from a variety of sources. And this has prompted investors to worry that Nvidia eventually may lose market share. But, in recent days, Meta made a striking move, and it's excellent news for Nvidia. Let's check it out. ![An investor looks at something on a smartphone at home.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NTcwMDQvaW52ZXN0b3Itc21pbGluZy1waG9uZS1hdC1ob21lLmpwZyZ3PTM4NDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. ## An early focus on GPUs First, though, let's start off with a quick summary of Nvidia's business so far. Even before AI became a high-growth industry, Nvidia recognized the potential of the technology and decided to design its GPUs to suit it. This early market presence helped Nvidia build an AI empire that now includes a variety of products from software to networking tools. Importantly, this focus on AI from the earliest days has brought Nvidia expertise and kept the company a step ahead of rivals: Nvidia's GPUs continue to maintain their reputation as the most powerful on the market. On top of this, Nvidia has committed to updating these chips annually, a move that makes it very difficult for competitors to slip ahead. Still, investors have worried about the increasing strength of products from rivals such as AMD -- and even moves by Meta, Amazon Web Services (AWS), and others to create their own chips. These new chips are cheaper than Nvidia's GPUs, offering them a clear selling point. Now, let's turn to the move Meta just made that should relieve investors' concerns. Meta has signed a new deal with Nvidia for the purchase of millions of chips, including GPUs, stand-alone central processing units (CPUs), and networking and security technologies. The value of the deal wasn't released, but CNBC cited Creative Strategies analyst Ben Bajarin as saying it may be worth "tens of billions of dollars." Expand ![Nvidia Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NASDAQ: NVDA Nvidia Today's Change (-0.04%) $-0.08 Current Price $187.90 ### Key Data Points Market Cap $4.6T Day's Range $185.66 - $188.43 52wk Range $86.62 - $212.19 Volume 127M Avg Vol 179M Gross Margin 70.05% Dividend Yield 0.02% ## Nvidia's CPUs for data centers A key point here is that Meta is turning to Nvidia for CPUs, the main processor in a computer, and will use these chips on their own in data centers -- this represents the first big move by Nvidia, a GPU specialist, in the CPU for data centers market. And the really good news here is that this deal shows the strength of Nvidia's leadership. Though Meta has developed its own chips and could also turn to other players for chips, the company instead has chosen Nvidia as the backbone of its AI infrastructure. Meta has put an enormous focus on AI, so it's clear this company is looking for the very best products to shepherd it along the path -- and once again, it's chosen Nvidia. So, what does this mean for investors? This doesn't suggest that other AI chip companies won't be successful. There is plenty of room for more than one company to generate significant revenue in this space. But this deal makes it clear that Meta's development of its own chips and even potential moves to buy chips from other companies aren't meant to replace Nvidia. And it's very likely that other Nvidia customers are taking the same route, diversifying supply while still relying on the AI giant. All of this should relieve worries about Nvidia losing market share -- and spur optimism about Nvidia's next chip launch later this year. ### Related Stocks - [NVDA.US - NVIDIA](https://longbridge.com/en/quote/NVDA.US.md) - [XLK.US - Spdr Select Tech](https://longbridge.com/en/quote/XLK.US.md) - [SOXX.US - iShares Semiconductor ETF](https://longbridge.com/en/quote/SOXX.US.md) - [NVDU.US - Direxion Daily NVDA Bull 2X Shares](https://longbridge.com/en/quote/NVDU.US.md) - [NVDL.US - GraniteShares 2x Long NVDA Daily ETF](https://longbridge.com/en/quote/NVDL.US.md) - [SMH.US - VanEck Semiconductor ETF](https://longbridge.com/en/quote/SMH.US.md) - [FBL.US - GraniteShares 2x Long META Daily ETF](https://longbridge.com/en/quote/FBL.US.md) - [NVDY.US - YieldMax NVDA Option Income Strategy ETF](https://longbridge.com/en/quote/NVDY.US.md) - [METW.US - Roundhill META WeeklyPay ETF](https://longbridge.com/en/quote/METW.US.md) - [NVDX.US - T-Rex 2X Long NVIDIA Daily Target ETF](https://longbridge.com/en/quote/NVDX.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 黃仁勳稱將發佈「令世界驚訝」新晶片「所有技術都已經逼近極限」 | 英偉達執行長黃仁勳在接受《韓國經濟日報》採訪時透露，將於 2026 年 3 月 16 日在聖何塞的 GTC 大會上發布一款「令世界驚訝」的新晶片。他表示，所有技術都已逼近極限，但有信心通過團隊合作克服挑戰。新晶片可能基於 Rubin 架構或 | [Link](https://longbridge.com/en/news/276297645.md) | | OpenAI 新一輪融資或突破千億美元 據報亞馬遜、軟銀、英偉達及微軟參與投資 | OpenAI 即將完成新一輪融資，預計籌集超過 1000 億美元，估值可能超過 8500 億美元。主要投資者包括亞馬遜、軟銀、英偉達和微軟。融資將分階段進行，預計在本年度內完成。亞馬遜可能投資高達 500 億美元，軟銀 300 億美元，英偉 | [Link](https://longbridge.com/en/news/276297991.md) | | 最近的文件顯示，眾議員 Daniel Meuser 出售了價值超過 2000 美元的 NVIDIA 股票 | 代表丹尼爾·梅瑟最近出售了價值在 $2,002 到 $30,000 之間的英偉達股票，該交易發生在 2026 年 1 月 14 日。英偉達股票目前上漲 1.88%，交易價格為 $188.44。在過去三年中，梅瑟進行了 24 筆交易，總金額超 | [Link](https://longbridge.com/en/news/276243670.md) | | 在可穿戴設備的熱潮中，Meta 重新啓動了智能手錶計劃 | Meta Platforms 計劃重啓其智能手錶項目，預計將在今年晚些時候推出 “Malibu 2”，此前該項目在 2022 年被擱置。這款智能手錶將具備健康追蹤功能和內置的人工智能助手，正值可穿戴設備需求日益增長之際。與此同時，Meta | [Link](https://longbridge.com/en/news/276305022.md) | | 英偉達進一步加大了對印度人工智能初創企業生態系統的早期支持力度 | 英偉達正在加大與印度人工智能初創企業生態系統的合作，通過與早期公司建立合作伙伴關係。英偉達計劃與風險投資公司 Activate 合作，從 7500 萬美元的基金中支持 25-30 家人工智能初創企業，為它們提供技術專長的支持。該倡議與印度人 | [Link](https://longbridge.com/en/news/276396822.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.