Meta Strikes Multibillion-Dollar AI Chip Deal With NVIDIA, Signaling Massive Infrastructure Spending Surge
🚨 AI Capex Arms Race Just Escalated
Meta just announced a multi-year infrastructure deal with NVIDIA to deploy millions of next-gen GPUs across its hyperscale data centers — plus NVIDIA CPUs, sidelining rivals like Intel and AMD.
💰 Key points traders are watching:
Meta may spend up to $135B on AI this year
Analyst Ben Bajarin of Creative Strategies says this single deal is likely tens of billions
NVIDIA stock rose +1.6% on the news
AI supply chain rallied in sympathy
📉 Context: Amazon recently lost ~$450B market value after announcing massive capex — yet Meta is doing the opposite and doubling down.
📊 Macro theme:
Big Tech is expected to spend $700B+ on AI infrastructure this year — and NVIDIA remains the biggest beneficiary.
⚖️ Investor Question:
Will real AI revenue scale fast enough to justify this historic spending wave… or is this a capex bubble forming?
