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Major tech giants are significantly ramping up their commitment to artificial intelligence (AI), with Meta Platforms announcing a substantial multi-year agreement to deploy millions of Nvidia processors. This strategic move, detailed on Bloomberg Technology on February 18, 2026, coincides with reports of Apple fast-tracking its own line of AI-powered wearable devices. These advancements unfold as Meta CEO Mark Zuckerberg is set to testify in a landmark social media addiction trial, underscoring both the rapid pace of technological innovation and increasing calls for accountability within the industry.
Key Points
- Meta Platforms is set to deploy "millions" of Nvidia GPUs and CPUs, including later generations, solidifying its position as a top customer for the chipmaker.
- Apple is reportedly accelerating the development of three new AI-enabled wearable devices: smart glasses, a pendant, and enhanced AirPods.
- Mark Zuckerberg will testify in a Los Angeles trial, facing allegations that Meta's platforms are intentionally designed to addict young users.
- The broader market is witnessing a "$10 trillion capex investment cycle" in AI, with growing evidence of productivity gains extending beyond the tech sector.
AI Infrastructure Surges with Meta's Nvidia Deal
In a significant boost to the AI infrastructure market, Meta Platforms has committed to deploying "millions" of Nvidia processors over the next few years. This agreement extends beyond existing Blackwell GPUs to include future generations and Nvidia Grace CPUs, as well as networking solutions. The deal reinforces Meta's role as Nvidia's second-largest customer, behind Microsoft, and signifies a substantial, multi-billion dollar investment.
The commitment marks a strategic expansion for Nvidia, particularly in its push to market the Grace CPU as a standalone product for general computing tasks in data centers, a segment traditionally dominated by Intel. According to Bloomberg's Ian King, this represents a "step forward and market expansion" for Nvidia, with Meta serving as a crucial early adopter. The average selling price for a data center GPU is approximately $16,000, with leading-edge models potentially costing double, suggesting the deal could represent "tens of billions" over its duration.
The news propelled Nvidia's stock nearly 3% higher, while Meta saw modest gains. Conversely, AMD shares dipped, reflecting Nvidia's continued dominance in hyperscaler and large enterprise AI spending, even as companies like Meta, Microsoft, and Amazon develop their own custom CPUs.
Apple's Strategic Push into Wearable AI
Meanwhile, Apple is reportedly fast-tracking its entry into the AI hardware market with three new wearable devices. Sources indicate the tech giant is developing smart glasses, a pendant, and next-generation AirPods with expanded AI capabilities. This strategy positions Apple to integrate AI seamlessly with its hardware, software, and services.
Bloomberg Managing Editor Mark Gurman revealed that the smart glasses, expected next year, will compete with Meta's offerings but with a higher price point and dedicated cameras. They will offer advanced functionalities, such as contextual navigation that might direct users with "make a right at the gray building" rather than just a distance. The pendant, also anticipated next year, is envisioned as an accessory providing "eyes and ears" to the phone and AI for users who may not wish to wear glasses or AirPods constantly. Enhanced AirPods, potentially launching as early as this year, will integrate some of these new AI features directly into the earbuds.
Social Media Accountability: Zuckerberg's Day in Court
The technology industry's rapid evolution is not without its challenges, as evidenced by Meta CEO Mark Zuckerberg's scheduled testimony in a Los Angeles trial. The lawsuit alleges that Meta's products, alongside Google's YouTube, are designed to addict young people, causing harm. This case is drawing comparisons to the "Big Tobacco moment" for the tech sector, marking a pivotal moment for social media accountability.
Sacha Haworth, Executive Director of the Tech Oversight Project, emphasized the significance of Zuckerberg's testimony, stating, "He will have to explain why, despite telling the public and members of Congress that their products were safe for kids, why he systematically buried internal research and data showing there is a connection and showing they did know that their products were addictive and showing they did know their products were harmful." Meta has publicly stated its strong disagreement with these allegations, asserting confidence that evidence will demonstrate its "long-standing commitment to supporting young people."
Broader Market Implications and AI's Economic Impact
The intense focus on AI development and its societal implications is set against a backdrop of significant economic shifts. Katy Huberty, Global Resource Director at Morgan Stanley, highlighted the beginning of a "$10 trillion capex investment cycle" in AI, driven by the technology's potential to accelerate productivity. This investment is not confined to tech; Morgan Stanley's analysis across 3600 stocks indicates that the greatest rate of change in AI adoption is now seen in non-tech categories such as consumer, apparel, durable goods, and autos.
"We are in the very early beginnings of what is likely to be a $10 trillion capex investment cycle. That investment cycle is underwritten by a productivity story as the technology diffuses into the market, there is real productivity acceleration which is important."— Katy Huberty, Global Resource Director, Morgan Stanley
Huberty noted that AI adopters are experiencing margin expansion double that of the MSCI World Index and the S&P 500, indicating a "regime shift" where AI adoption and leadership are broadening across all sectors. While policymakers, like San Francisco Fed President Mary Daly, acknowledge the undeniable rise in productivity, they caution that assessing how long these gains will persist and definitively attributing them to AI remains a complex challenge for economists.
As the tech landscape continues to evolve, the interplay between groundbreaking AI innovation, massive capital expenditure, and increasing calls for ethical governance will define the industry's trajectory and its impact on the global economy and society.
