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Meta Just Signed a Huge Deal to Use Amazon's Graviton CPU Chips for AI
On Friday, Amazon Web Services announced a multi-year deal with Meta to deploy tens of millions of AWS Graviton 5 CPU cores supporting the company's next-generation agentic AI workloads.
Meta's head of infrastructure, Santosh Janardhan, stated that expanding to Graviton allows the company to run CPU-intensive agentic AI workloads efficiently while using 60% less energy than standard computing options.
Analysts predict Arm-based designs will capture 90 percent of the server CPU market by 2029, reflecting a broader industry shift that Janardhan characterized as a strategic imperative to diversify Meta's compute fleet.
Meta is counterbalancing these infrastructure expansions with workforce restructuring, announcing plans on Thursday to lay off around 8,000 employees, representing about 10% of its staff.
CEO Mark Zuckerberg continues to spend aggressively on compute, recently signing deals totaling $48 billion with CoreWeave and Nebius to secure access to Nvidia GPUs complementing the new Graviton infrastructure.