Editorial illustration for Meta secures millions of Nvidia AI chips as Nvidia begins selling own AI CPUs
Meta Builds Custom AI Chip to Challenge Nvidia Dominance
Meta secures millions of Nvidia AI chips as Nvidia begins selling own AI CPUs
Meta has ordered millions of Nvidia’s top-tier AI chips. That’s the official word. It’s a staggering commitment of compute power.
Now, shift focus to the supplier. According to The Verge, Nvidia is taking an unprecedented step: buying its own cutting-edge AI CPUs for its data centers. That job usually falls to its customers.
These parallel moves reveal the furious scale of Meta’s AI ambitions, even as the Financial Times reports the company’s own internal chip projects are snarled by technical delays.
Meta's new deal with Nvidia buys up millions of AI chips Nvidia's starting to sell AI CPUs for use by themselves for the first time. Nvidia's starting to sell AI CPUs for use by themselves for the first time. Meta is also working on its own in-house chips for running AI models, but according to the Financial Times, it has run into "technical challenges and rollout delays" with its chip strategy. Nvidia is also dealing with concerns about depreciation and chip-back loans used to finance AI buildouts, as well as the pressure of competition.
Those internal stumbles, per the FT, mean Meta remains locked into Nvidia hardware for now. The chip deal is a tactical necessity. But Nvidia’s new role as a buyer of its own gear—a key detail from the report—fundamentally alters its posture.
It’s a precarious shift. The company now juggles the financial pressures of hardware-backed loans and rising competition while becoming both supplier and rival to its largest clients. The result is a knot of mutual dependency.
Each is building its own future, leaning heavily on the other to do it.
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Common Questions Answered
Why is the $100 billion Nvidia-OpenAI deal currently stalled?
[cnbc.com](https://www.cnbc.com/2026/02/03/nvidia-openai-stalled-on-their-mega-deal-ai-giants-need-each-other.html) reports that negotiations are 'on ice' after some within Nvidia expressed doubts about OpenAI's business model. Despite the friction, both companies still need each other, with Nvidia requiring customers like OpenAI to drive chip sales and OpenAI needing Nvidia's AI chips to meet growth targets.
What did Jensen Huang say about the proposed $100 billion OpenAI investment?
[fortune.com](http://fortune.com/2026/02/02/jensen-huang-nvidia-ceo-on-openai-investment-never-a-commitment/) quotes Huang stating that the $100 billion investment was 'never a commitment' and that Nvidia would consider funding rounds 'one at a time'. Huang also told CNBC that he is 'looking forward to Sam closing it' and will 'invest in the next round'.
What is the current valuation of Nvidia and OpenAI according to the article?
As of the article's publication, Nvidia's market cap peaked at $5 trillion in October and has since dropped to $4.4 trillion. OpenAI was valued at $500 billion on the private market late last year and is reportedly eyeing a valuation over $800 billion in its next funding round.
Further Reading
- Nvidia and Meta expand GPU team up with millions of additional AI ... — AOL Finance
- Nvidia resets the economics of AI factories, again - SiliconANGLE — SiliconANGLE
- Nvidia AI Chips Face Rising Competition - InsiderFinance — InsiderFinance
- At CES, NVIDIA and AMD Made Memory the Future of AI - Futurum — Futurum Group
