Meta strikes deal with Amazon's cloud unit to use its CPU chips


FILE PHOTO: FILE PHOTO: The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. REUTERS/Gonzalo Fuentes/File Photo

SAN FRANCISCO, ⁠April 24 (Reuters) - Meta Platforms and Amazon.com on Friday said ⁠Meta will use Amazon Web Services' (AWS) Graviton5 central processing ‌unit (CPU) chips, a deal an AWS executive told Reuters would span multiple years and be worth billions of dollars.

• Meta will use "tens of millions ​of cores" worth of Graviton chips. Each ⁠chip itself contains 192 ⁠cores, but they can each be assigned to different tasks.

• While ⁠graphics ‌processing units (GPUs) made by firms such as Nvidia remain essential for training AI models, once they are ⁠trained and deployed they often run on CPUs.

• ​The CPU market ‌is undergoing an AI-driven renaissance, with Intel saying this ⁠week CPU prices ​were rising as demand soars.

• AWS has been developing its in-house CPU since 2018 and is now on its fifth generation ⁠of the chip, which it buys directly ​from Taiwan Semiconductor ManufacturingCo.

• "We pass that savings on to the customers," Nafea Bshara, vice president and distinguished engineer at Amazon Web ⁠Services, told Reuters, sayingthe Meta deal would span multiple years and be worth billions of dollars.

• Meta has previously signed large chip deals with Nvidia and Advanced Micro Devices, and also ​has worked closely with Arm Holdings on ⁠Arm's new CPU.

• “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.

(Reporting by Stephen Nellis in San Francisco; Editing by Tom Hogue)

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