Nvidia and AMD invest billions into Meta as companies egg each other on to bet even more on AI
News Source
β’Tue, 27 Oct 2026 16:34:31 +0000
π° What Happened
Nvidia and AMD both announced partnerships with Meta this week. Nvidia will put $3 billion into Meta and supply chips, Vera Rubin systems, Spectrum X networking and BlueField-4 processors. The two will also work together on Meta's Muse AI models.
One day later AMD said it would help build Meta's AI data centres and invest $1 billion. That is $4 billion going into Meta, while Meta spends its own money buying hardware from both chip makers.
π The Backstory
The deals tie the three companies closer together, and each one gains from the others doing well. Nvidia recently became the world's first $5 trillion company on the back of AI demand.
Worries about an AI bubble are growing. The sector lost about $1 trillion in value a few weeks ago. The Wall Street Journal calls AI spending the biggest economic bet in US history, larger as a share of infrastructure spending than railways or highways.
π― Why It Matters
AI data centres are soaking up memory chips, so gamers already pay more for RAM, SSDs and graphics cards. If the boom slows, prices might fall, but the shock could hit the wider economy hard.
Nvidia and AMD both announced partnerships with Meta this week. Nvidia will put $3 billion into Meta and supply chips, Vera Rubin systems, Spectrum X networking and BlueField-4 processors. The two will also work together on Meta's Muse AI models.
One day later AMD said it would help build Meta's AI data centres and invest $1 billion. That is $4 billion going into Meta, while Meta spends its own money buying hardware from both chip makers.
The deals tie the three companies closer together, and each one gains from the others doing well. Nvidia recently became the world's first $5 trillion company on the back of AI demand.
Worries about an AI bubble are growing. The sector lost about $1 trillion in value a few weeks ago. The Wall Street Journal calls AI spending the biggest economic bet in US history, larger as a share of infrastructure spending than railways or highways.
AI data centres are soaking up memory chips, so gamers already pay more for RAM, SSDs and graphics cards. If the boom slows, prices might fall, but the shock could hit the wider economy hard.