Meta signs multibillion-dollar deal for Amazon Graviton5 chips as AI compute demand outstrips $135B capex budget

Summary: Meta signed a multibillion-dollar, multi-year deal to deploy tens of millions of Amazon’s Graviton5 ARM CPU cores in AWS data centres for agentic AI workloads. The chips are general-purpose processors, not AI accelerators, handling the CPU-intensive inference and orchestration tasks behind real-time reasoning and multi-step agents. The deal is one piece of a procurement campaign exceeding $200 billion across Nvidia ($50B), AMD ($60B), CoreWeave ($35B), Nebius ($27B), Broadcom (MTIA custom silicon through 2029), and now Amazon, reflecting Meta’s conclusion that its AI compute demand exceeds what any single supply chain can deliver.

Meta has signed a multibillion-dollar, multi-year deal with Amazon Web Services to deploy tens of millions of Graviton5 processor cores for artificial intelligence workloads, the companies announced on Thursday. The chips are not AI accelerators. They are general-purpose ARM-based CPUs, 192 Neoverse V3 cores per chip, manufactured on a 3-nanometre process, running in AWS data ...