[DigitalToday reporter Chi-gyu Hwang] Nvidia is shaking up the CPU market dominated by Intel and AMD after signing a long-term agreement to supply Meta with AI chips, Business Insider reported on Tuesday.

Under the deal, Meta plans to build data centres by adopting Nvidia’s current and next-generation AI chips at scale.

The agreement is drawing attention because it includes not only GPUs but also Nvidia’s Grace CPU. Meta became the first company to deploy the Grace CPU at scale as a standalone placement, rather than supplying it alongside GPUs in servers.

Intel and AMD have led the data centre CPU market, but attention is focused on how the industry landscape may change as Nvidia expands into CPU supply. Patrick Moorhead (패트릭 무어헤드) of Moor Insights & Strategy said, "Nvidia is strengthening its independent position in the CPU market as well."

Nvidia has recently marketed its next-generation CPU, "Vera", as a standalone product and is emphasising the importance of CPUs in AI inference work.

Analyst Rob Enderle (로브 엔더리) said, "In AI inference work, CPUs are cheaper and more power-efficient," adding that Meta’s strategy to reduce complexity by sourcing GPUs and CPUs from the same supplier also played a role.