Meta has committed $27 billion in contracted AI cloud services through 2031 with Nebius Group, a company spun out of Yandex in 2024. This arrangement accounts for more than half of Nebius’s roughly $50 billion backlog and supports Meta’s plan to expand its AI infrastructure capacity massively by the end of the decade.

Meta announced major AI-driven workforce reductions to trim payroll costs, which represent two-thirds of its corporate expenses. The cuts aim to enhance profit margins and redirect funds toward AI research and development, though they risk affecting employee morale and talent retention during intense competition for AI specialists.

In parallel, Meta extended its multi-generation AI processor design deal with Broadcom, building on a $2.3 billion chip design agreement from the prior year. This partnership is part of Meta’s strategy to internalize hardware development, reduce reliance on external chip suppliers and optimize performance for its AI applications.