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Meta has confirmed it will utilize 3-nanometer Graviton5 chips from AWS, establishing the company as one of the world's largest customers of Amazon's Graviton cores. This multiyear agreement is driven by the rise of agentic AI, which demands massive CPU-intensive workloads beyond Meta's previous $48 billion investment in GPUs. To fund these escalating infrastructure costs, Meta plans to lay off 8,000 employees, representing 10% of its workforce, as part of a broader corporate restructuring. By leveraging Amazon's latest silicon, Meta aims to diversify its hardware supply chain and reduce reliance on traditional third-party chipmakers. This partnership validates Amazon's custom silicon strategy, positioning AWS as a formidable player in the specialized semiconductor market while highlighting the high human cost of the global AI race.
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