Meta has reached a significant agreement with Amazon to utilize the tech giant's Graviton chips for agentic AI, underscoring the increasing interest in Amazon's silicon offerings. This multi-year deal is reportedly valued at billions of dollars and positions Meta as one of the largest customers of the Graviton technology, with access to tens of millions of Graviton5 processor cores in AWS data centers.
This announcement comes on the heels of Meta's decision to reduce its workforce by approximately 10%, translating to around 8,000 job cuts, reflecting broader trends in the tech industry as firms invest heavily in AI infrastructure while trimming staff. Amazon's CEO Andy Jassy emphasized the growing relevance of central processing units in AI, noting that agentic systems require robust CPUs for effective operation.
In addition to this latest deal, Meta has been diversifying its AI infrastructure by collaborating with several chip manufacturers, including Nvidia and AMD, and exploring in-house silicon development. Amazon has also made strides in the chip market, with its custom silicon business generating over $20 billion annually, indicating a competitive future landscape in AI hardware.