Meta to Spend Up to $10.5 Billion on Nvidia GPUs, Signaling Faith in AI Future Despite Mounting Losses
-
Meta plans to install 350,000 Nvidia H100 GPUs in its data centers by end of 2024, likely spending $8.8-$10.5 billion.
-
This shows AI market is still heating up and Nvidia will remain a key player, boosting its data center revenue growth.
-
It also indicates custom AI chips from big tech firms won't replace Nvidia GPUs for the foreseeable future.
-
For Meta, the GPU purchase raises questions about its future profitability as losses mount in its Reality Labs segment.
-
Long-term, Meta's AI investments could pay off by making its algorithms more effective at targeting ads and engage users.