Did Meta Platforms Just Say Checkmate to Nvidia?

Some say data is the new oil. This is especially true in the artificial intelligence (AI) space, where increased computing costs are the primary bottleneck on growth. As many readers will know, Nvidia (NASDAQ: NVDA) has benefited tremendously from the growing importance of data center computing. The computer chip designer is now the largest company in the world by market capitalization, and the $46.7 billion in revenue it posted last quarter was up 56% year over year.Large data center builders such as Meta Platforms (NASDAQ: META) are now spending tens of billions of dollars on Nvidia's chips every year. In a bid to cut down on these costs, Meta just acquired an AI computer chip start-up called Rivos. Did this just turn one of Nvidia's top customers into a competitor overnight? The answer is more complicated than it seems.With plans to spend around $70 billion on capital expenditures this year and even more in 2026, Meta is putting considerable sums toward feeding its insatiable need for Nvidia chips to train and power AI systems. Meta had already been in talks with Rivos about building chips using the RISC-V architecture, an open-source chip design platform. Now, after its acquisition, Rivos will focus on building AI chips for Meta's internal use. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool