Meta Increases AI Spending, Boosting Nvidia Orders
Meta Platforms (NASDAQ: META) has announced a substantial increase in its capital expenditure plans, projecting to invest between $115 billion and $135 billion by 2026, up from $72.2 billion in the previous year. As part of this strategy, Meta is set to place orders for millions of Nvidia (NASDAQ: NVDA) chips in 2023 to enhance its AI infrastructure.
On February 17, 2023, Meta and Nvidia partnered in a multiyear agreement to deploy Nvidia’s advanced hardware, including Grace CPUs and millions of Blackwell and Rubin GPUs, in Meta’s data centers. This deal positions Nvidia for stronger growth, with analysts forecasting a 53% revenue increase for the company in fiscal 2027, potentially reaching $327 billion, alongside a 65% jump in earnings for the current year.
