Meta commits to buying hundreds of thousands of Amazon Graviton chips in multiyear deal, securing alternative to NVIDIA

Meta and Amazon signed a multiyear agreement for hundreds of thousands of Graviton chips—Amazon's custom processors designed to run AI models. This makes Meta one of Amazon's largest customers for these chips and signals a major shift away from relying solely on NVIDIA's expensive hardware for AI infrastructure.

Graviton chips cost less than NVIDIA's standard options while handling the same AI workloads (the process where an AI model produces answers). By diversifying suppliers, Meta reduces both its hardware expenses and its dependency on a single vendor whose chip prices and availability have been constraining factors for companies building large AI systems.

For Meta's business, this deal lowers the cost per AI feature deployed across Facebook, Instagram, and Llama (Meta's open AI model), making it cheaper to add AI-powered search, recommendations, and content filters. For the broader AI industry, this signals that companies will no longer accept vendor lock-in—meaning NVIDIA's pricing power may face real competition for the first time.