Meta has signed a multibillion-dollar agreement with Amazon to use its Graviton chips for agentic AI, a move that follows the company's announcement of a 10% workforce reduction, roughly 8,000 employees. The deal positions Meta as one of the largest Graviton customers worldwide. The partnership reflects a broader trend of AI firms diversifying compute sources. Meta already partners with Nvidia, AMD, Google, and is developing in-house silicon with Broadcom. Amazon is establishing itself as a major chipmaker, with its custom silicon business generating more than $20 billion a year in revenue. Under the agreement, Meta will tap tens of millions of Graviton5 processor cores housed in AWS data centers. Amazon CEO Andy Jassy disclosed that it is "quite possible" Amazon will sell racks of its chips to third parties in the future, potentially competing directly with Nvidia. The deal follows Anthropic's $25 billion partnership to run models on Amazon's Trainium processors and OpenAI's $100 billion cloud agreement. Amazon CEO Andy Jassy noted that agentic AI is "becoming almost as big a CPU story as a GPU story," underscoring the growing importance of traditional CPUs for reasoning tasks. Meta 's head of infrastructure, Santosh Janardhan, said diversifying compute sources is a strategic imperative as the company scales its AI infrastructure. Looking ahead, Amazon is poised to deepen its role as a major chipmaker, while Meta continues to expand its AI capabilities across multiple silicon platforms, positioning both firms at the forefront of the evolving AI hardware landscape.