Nvidia, AMD to buy $4B in Meta shares as part of expanded chip partnerships – SiliconANGLE

Meta Platforms Inc. today announced that Nvidia Corp. and Advanced Micro Devices Inc. plan to buy $4 billion worth of its shares.

The chipmakers will purchase the equity as part of an up to $95 billion stock sale that the Facebook parent intends to kick off in the near future. The fundraising initiative will also include the participation of Broadcom Inc. Meta didn’t specify how much the company is investing, but it stated on Monday that Nvidia, AMD and Broadcom together plan to invest $5 billion. That suggests the networking chip giant will buy $1 billion in shares.

Nvidia is investing $3 billion as part of a newly expanded partnership that also includes other components. Notably, Meta plans to broaden its use of the chipmaker’s Rubin graphics processing units and Vera central processing units. Companies often deploy the two chips together in Nvidia-designed DGX Vera Rubin NVL72 appliances. Each system includes 72 GPUs and 36 CPUs.

Meta also plans to buy more Nvidia networking gear. It will expand its use of the Spectrum-X Ethernet product family, which includes SuperNICs and switches. SuperNICs are chips that connect servers to a data center’s network, while switches coordinate how traffic flows through that network.

GPU clusters’ traffic patterns tend to change rapidly. As a result, connectivity bottlenecks sometimes emerge faster than the network can respond to them. Nvidia says that its Spectrum-X Ethernet product series addresses the challenge by checking