Did Metaplatform say to Nvidia “checkmate”?

One stock of AI (AI) that reached this year’s sc fever start is the social media juggernaut meta platform (Meta) -2.29%)). Just a few weeks ago, Meta’s leadership told investors that 2025 will be a chock-up year as it is trying to continue moving actively on the AI ​​roadmap.

Specifically, Meta is preparing to spend up to $65 billion of AI infrastructure this year. This is an increase of 65% year-on-year. Given that the company is working closely with NVIDIA and Advanced Micro Devices and is working with Broadcom to design its own custom inference chips, Meta will be able to offer such a robust increase in capital expenditures (CAPEX). It’s not so surprising that we’re planning.

But what’s surprising is that Meta may just have found a new source for its capital. And it could put nvidia in the jam. Below we’ll dig into recent news, including Meta, and go into more detail about how it will affect Nvidia.

How Meta is trying to jump Nvidia?

Nvidia controls the graphics processing unit (GPU) market, but the company faces competition beyond AMD’s usual doubt. That means many of Nvidia’s biggest customers, including cloud hyperscaler Microsoft, Amazon, and Alphabet, as well as social networking platform Meta, are investing in their own custom chip products. The rationale behind these investments is to complement existing chipsets with new architectures to move away from Nvidia’s complete reliance on stacks.

Meta’s foray into the GPU realm will revolve around its meta-training and inference accelerator (MTIA) chips. MTIA chips are still an early initiative in the meta, but it is likely that the company has identified ways to move the project forward much faster than originally expected.

Several media reports that Meta is considering acquiring Furiosaai, a chip startup from South Korea. Furiosaai claims its processing power is more cost-effective compared to Nvidia’s latest GPUs. If this is the case, it could change the game of the meta, as it focuses on this year’s CAPEX plan and getting more data center chips.

In theory, the cost-efficiency brought about by Furiosaai and the company’s chip development process could bring some obvious synergistic effects to Meta’s AI budget and its product roadmap as MTIA chips continue to develop. There is.

Image source: Getty Images.

Can Meta’s transactions spell out Nvidia’s troubles?

On the surface, the introduction of MTIA chips may seem like a crisis for Nvidia.

However, Meta’s tips are only a year ago. So, when compared to Nvidia in just one year, it is unlikely that the company has developed anything refined or anything more.

For this reason, Nvidia doesn’t say there’s a risk of losing meta as a customer anytime soon. Furthermore, news about Meta’s interest in Furiosaai is currently rumours.

Furthermore, even if Meta moves forward with Juliosai’s acquisition, there will still be a lot to do about the home integration and product development aspects. Augmenting Furiosaai’s technology with Meta’s AI is not necessarily a bad thing for Nvidia. If anything, the added competition could lead to more innovation and cutting-edge architecture in the GPU landscape.

Anyway, I think it’s only a matter of time before the semiconductor sector begins to integrate. Many of Nvidia’s biggest customers are already focusing on their own in-house chipware. With that in mind, you won’t be surprised to see Big Tech launching acquisitions and partnerships with other chip makers outside the Nvidia ecosystem over the next few years.

At the end of the day, potential acquisitions by Meta are not seen as checkmate moves against Nvidia. Unless a transaction is formed, Nvidia’s motivated stock movements are rooted in emotionally driven speculations.