Meta Secures Multibillion-Dollar AWS Graviton5 Deal, Cuts 8,000 Jobs
Meta signed a multibillion-dollar, three-year AWS agreement to deploy hundreds of thousands of Graviton5 CPU cores for agentic AI workloads. The company plans to eliminate about 8,000 roles (10% of workforce) as it normalizes headcount after pandemic-era hiring surges.
1. AWS Graviton5 Deal
Meta signed a multibillion-dollar, three-year agreement with AWS to deploy hundreds of thousands of Graviton5 processors. The 192-core chips, built on 3-nanometer technology, deliver up to 25% better performance than prior generations and reduce inter-core latency by up to 33%, optimizing CPU-heavy agentic AI tasks.
2. Expansion of Compute Partnerships
This AWS deal complements Meta’s recent $48 billion GPU commitments with CoreWeave and Nebius, multibillion-dollar TPU agreements with Google, and ongoing collaborations with Nvidia, AMD and Broadcom. Together, these partnerships form a diversified compute strategy supporting both external and in-house MTIA chip development.
3. Workforce Normalization
Meta will cut roughly 8,000 positions, about 10% of its global staff, as part of a broader effort to rebalance costs and improve efficiency. The reductions follow rapid pandemic-era hiring and align resource allocation with projected CPU-intensive AI infrastructure needs.