Meta Platforms Invests in AI Infrastructure
Meta Platforms Inc. (NASDAQ: META) is set to spend up to $135 billion in 2023 on capital expenditures, including a significant five-year capacity deal with neocloud provider Nebius Group (NASDAQ: NBIS) valued at $27 billion. This agreement, announced in mid-March, guarantees Meta $12 billion of dedicated capacity using Nvidia’s Vera Rubin GPU architecture, with an option for an additional $15 billion in capacity.
By partnering with Nebius, Meta aims to diversify its supply chains and alleviate constraints related to power and chip shortages, enhancing its AI capabilities across platforms like Facebook and Instagram. Nebius, which has established partnerships with key players like Microsoft and Nvidia, is expected to substantially increase its revenue due to this contract, projecting annualized recurring revenue between $7 billion and $9 billion for 2026, a 540% growth from previous forecasts.
