AMZN
META
New chip crush?
Meta said it will use “tens of millions of cores” of Amazon’s Graviton central-processing units, which is tech-speak for: AWS just landed another big name for its homegrown silicon. That matters because Graviton isn’t just another server chip — it’s part of Amazon’s broader push to make cloud customers less dependent on Nvidia’s pricier stuff.
Why investors should care
If Meta is comfortable running serious workloads on Amazon-designed chips, that’s a nice little flex for AWS. It suggests Amazon’s silicon is good enough for heavyweight AI and cloud tasks, and that could help AWS keep more workloads in-house instead of handing margin to outside chip suppliers.
For Amazon, this is the kind of deal Wall Street likes because it’s less about one giant check and more about the long game:
- more stickiness inside AWS
- better chip economics over time
- a stronger pitch against rivals selling pure GPU horsepower
The bigger picture
This doesn’t mean Meta is married to Amazon’s chips forever, and it definitely doesn’t make Nvidia irrelevant — let’s not get carried away. But it does show Amazon keeps finding ways to sneak deeper into the AI boom without needing to own the whole conversation.
Big picture: when a mega-cap like Meta leans on Amazon hardware, that’s not just a customer win. It’s a signal that AWS wants a bigger slice of the AI infrastructure pie, and it’s not showing up empty-handed.