NVIDIA Expands AI Chip Domination in Meta’s $115–135B Data Center Deal
NVIDIA and Meta extended a multigenerational AI partnership with immediate deployment of millions of Blackwell GPUs and future Rubin GPUs, plus Vera CPUs, Spectrum-X networking, and Confidential Computing for encrypted workloads. Meta’s record $115–135B 2026 CapEx lifted NVIDIA shares 2.3% and underpins a FYQ4 revenue projection near $65.5B.
1. Expanded Partnership
On February 17, NVIDIA and Meta formalized a multigenerational codesign deal that commits Meta to buy millions of Blackwell GPUs immediately and adopt upcoming Rubin GPUs and Arm-based Vera CPUs. The agreement also integrates Spectrum-X Ethernet networking and Confidential Computing modules to enable encrypted AI workloads without exposing data.
2. Market Reaction and Financials
Investors drove NVIDIA shares up 2.3% to around $189 following the announcement, reflecting confidence in sustained hardware demand. Meta’s guidance for $115–$135 billion in 2026 capital expenditures supports analysts’ forecast of roughly $65.5 billion in NVIDIA revenue for fiscal Q4.
3. Strategic Significance
By shifting from mixed-vendor hardware to NVIDIA’s full-stack solution, Meta deepens its reliance on NVIDIA across GPUs, CPUs, and networking, broadening NVIDIA’s data-center moat. Confidential Computing addresses privacy hurdles for encrypted AI services, positioning NVIDIA as a critical infrastructure provider for next-generation applications.