Meta Platforms announced a multi‑year agreement with Amazon Web Services to deploy tens of millions of AWS Graviton5 CPU cores, a deal valued in the billions of dollars. The contract will see Meta leverage Amazon’s latest 3‑nanometer ARM‑based processors, each featuring 192 cores, to scale the compute capacity required for its next‑generation agentic AI workloads.
The partnership expands Meta’s AI compute footprint beyond its own data centers and custom MTIA silicon. By adding Graviton5 cores, Meta can run CPU‑intensive tasks—such as real‑time reasoning, code generation, and task orchestration—more efficiently, reducing its dependence on Nvidia GPUs and improving energy efficiency for large‑scale training and inference.
Deploying Graviton5 complements Meta’s internal silicon strategy. While MTIA chips are tailored for Meta’s specific workloads, the AWS CPUs provide a flexible, high‑density option that can be scaled quickly and cost‑effectively, allowing Meta to balance workloads across multiple vendors and avoid single‑point supply risks.
The deal targets Meta’s agentic AI services, including the AI platform that powers internal tools and consumer products. By offloading these workloads to AWS, Meta can accelerate the rollout of AI‑powered advertising and consumer features while maintaining control over data and model training pipelines.
AWS’s custom silicon strategy gains a high‑profile validation. Securing Meta as a major customer for billions of Graviton5 cores demonstrates Amazon’s ability to compete for large AI infrastructure contracts, even against companies with extensive in‑house expertise. The partnership also positions Meta favorably against competitors that are investing heavily in AI hardware.
Santosh Janardhan, Meta’s head of infrastructure, said, "As we scale the infrastructure behind Meta’s AI ambitions, diversifying our compute sources is a strategic imperative." Nafea Bshara, an AWS executive, added, "This isn’t just about chips; it’s about giving customers the infrastructure foundation, as well as data and inference services, to build AI that understands, anticipates, and scales efficiently to billions of people worldwide."
Amazon’s shares rose after the announcement, driven by investor confidence in AWS’s custom chip strategy and its success in securing a large AI contract. The market reaction reflected the validation of Amazon’s ability to compete for high‑profile AI infrastructure deals and Meta’s confidence in its AI roadmap.
The agreement is part of Meta’s broader 2026 capital‑expenditure plan, which projects $115 billion to $135 billion in AI investments. By securing a multi‑year, multi‑billion‑dollar deal with AWS, Meta accelerates its AI product development while diversifying its compute sources and improving energy efficiency across its global infrastructure.
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