Nvidia is expanding beyond GPUs into Intel and AMD's traditional CPU territory with its Grace processors. The company announced a multi-year agreement with Meta to supply millions of Blackwell and Rubin GPUs while also deploying Nvidia Grace CPU-only servers in Meta's data centers.

This marks the first large-scale deployment of Nvidia's Grace chips, which the company pairs with Blackwell GPUs in its GB200 and GB300 AI superchips. The move capitalizes on growing demand for traditional CPUs in AI inferencing and agentic AI applications. Nvidia's acquisition of Mellanox in 2020 already positioned the company as a major networking player in data centers.

For Intel, already struggling with capacity constraints that prevent meeting data center demand, Nvidia's CPU push couldn't come at a worse time. While Intel reported it's unable to fulfill all CPU orders, the company is simultaneously partnering with Nvidia to produce hybrid servers combining Nvidia GPUs with Intel CPUs. Nvidia is also reportedly developing laptop chips to challenge Intel and AMD in the consumer market, with Lenovo allegedly preparing machines featuring Nvidia's N1 and N1X processors.