Meta strikes deal with Amazon's cloud unit to use its CPU chips 

By Stephen Nellis

SAN FRANCISCO, ‌April 24 (Reuters) - ​Meta ​Platforms and Amazon.com on Friday said Meta will use Amazon Web Services' (AWS) Graviton5 central processing unit (CPU) ‌chips, a deal an AWS executive told Reuters ⁠would span multiple years and be worth billions of dollars.

• Meta ‌will use "tens of millions of ‌cores" worth of Graviton chips. Each chip itself contains 192 cores, but they can each be assigned to ​different tasks.

• While graphics processing units (GPUs) made by firms such as Nvidia remain essential for training AI models, ⁠once they are trained and deployed they often run on CPUs.

• The CPU ​market is undergoing an AI-driven renaissance, with Intel saying this week CPU prices were rising as ​demand soars.

• AWS has been ‌developing its in-house CPU since 2018 and is now on its fifth generation of the ⁠chip, which it buys directly from Taiwan Semiconductor Manufacturing Co.

• "We pass that savings on to the customers," Nafea Bshara, vice president and ⁠distinguished engineer at Amazon Web Services, told Reuters, saying the Meta deal ​would span multiple years and be worth billions of dollars.

• Meta has previously signed large chip deals with Nvidia and Advanced Micro Devices, ‌and also has worked closely with Arm Holdings on Arm's new CPU.

• “As we scale ‌the infrastructure behind Meta's AI ambitions, diversifying our compute sources ⁠is a strategic imperative," ‌Santosh Janardhan, head of ​infrastructure at Meta, said in a statement.

(Reporting by Stephen Nellis in San Francisco; Editing by Tom ‌Hogue)

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