Meta Platforms has agreed a multi-billion dollar, multi-year chip deal with Amazon to use Amazon Web Services’ Graviton5 chips as it expands the computing power behind its artificial intelligence plans.
The agreement will see Meta use tens of millions of Graviton processing cores, according to Amazon Web Services executive Nafea Bshara, who said the contract would run for several years and be worth billions of dollars.
Demand for AI infrastructure is spreading beyond graphics processors made by firms such as Nvidia, while GPUs are essential in training AI models. Companies now need large volumes of central processing units to run trained systems, manage workloads and support AI agents.
Meta said the deal is part of its strategy to avoid relying on one supplier or one type of chip.
“As we scale the infrastructure behind Meta’s AI ambitions, diversifying our compute sources is a strategic imperative,” Santosh Janardhan, head of infrastructure at Meta, said in a statement.
Amazon said Meta chose its latest Graviton5 processor because of its price and performance. The chip is Amazon’s fifth in-house CPU generation and is produced by Taiwan Semiconductor Manufacturing Co.
“We pass that savings on to the customers,” Bshara told Reuters.
He added that most of the chip capacity for Meta would be based in the United States.
The partnership builds on an existing relationship between both companies that dates back several years. Earlier work had focused mainly on cloud services, Amazon’s Bedrock platform and GPU rentals.
For Meta, the latest agreement adds to its list of chip partnerships. The company has already signed major supply deals with Nvidia and AMD, while also working with Arm Holdings.
Amazon, meanwhile, is going deeper into AI infrastructure with both its own silicon and outside partnerships. Earlier this week, it announced another $5 billion investment in Anthropic, which will also use tens of millions of AWS Graviton cores.
