Bloomberg Tech: Meta to Deploy “Millions” of Nvidia Processors

Date: February 18, 2026
Hosts: Caroline Hyde (New York), Ed Ludlow (San Francisco)
Episode Focus: News and analysis on global technology companies, investors, and the future of AI hardware, productivity, software, clean energy, and the ongoing social media addiction trial against Meta.

Overview

This episode centers on Meta's landmark commitment to acquire millions of Nvidia processors, shaping both the AI hardware market and public sentiment. The hosts and expert guests analyze Nvidia's dominance, investor reactions, and implications of the capex supercycle. The show then navigates key topics including software valuations amid the AI revolution, Autodesk's massive AI investment, Blue Origin's pivot, Apple's platform for AI hardware innovation, the Gulf states' deepening AI investments, and energy transformation’s role in enabling this growth. Finally, it previews Mark Zuckerberg’s testimony in the high-profile social media addiction trial.

Key Discussion Points & Insights

1. Meta and Nvidia’s Processor Deal: A Market-Moving Commitment

• Announcement: Meta agrees to deploy “millions” of Nvidia processors over the next few years.

• Context: Meta is already Nvidia’s #2 customer (behind Microsoft). This deal involves next-gen Blackwell GPUs, upcoming Ruben chips, and the new Grace CPUs, plus essential networking hardware.

• Industry Impact:

  • Nvidia shares jumped nearly 3%.
  • Deal underscores Nvidia’s growing dominance — even as major cloud players (Microsoft, Amazon) attempt to build their own AI chips, commitments to Nvidia’s roadmap are valuable signals to investors.
  • Notable Quote:

    "Nvidia is saying: Hey, we've got this CPU that was buried in the middle of all of this gear, but you can just use it on its own … That's a market extension for them."
    — Bloomberg’s Ian King (04:59)

  • The magnitude: With data center GPUs selling for $15–32K each, this contract is easily worth tens of billions of dollars over time.
  • Nvidia’s Grace CPU is breaking into a market traditionally dominated by Intel and AMD.

• Market Breakdown:

  • Microsoft (#1 Nvidia customer) brings in ~18% of Nvidia revenue; Meta ~9%.
  • Nvidia’s expansion disrupts the traditional data center CPU market.
  • AMD shares declined on news; hyperscalers like Meta increasingly resemble cloud giants in their data center scale.

2. The $10 Trillion AI Investment Cycle

Guest: Katie Huberty, Morgan Stanley Global Research

• Key Thesis:
  • We’re in the early innings of a $10 trillion capital expenditure upcycle underpinned by AI's productivity promise.
  • Sectors adopting AI see margin expansion double that of the MSCI World Index and S&P 500.
  • Notable Quote:

    "We believe there's a regime shift... to a broadening of AI adoption and leadership, not just in technology but across all sectors." (18:23)

• Investor Takeaways:
  • Indiscriminate selling in software and services after choppy AI-driven volatility presents opportunity.
  • AI adopters in non-tech categories — consumer goods, apparel, autos — now see the greatest rate of improvement.
• Private vs. Public Coverage:
  • Morgan Stanley is leveraging domain experts from public stock research to track private tech innovators as well.

3. Autodesk Bets Big on AI World Modeling

Guest: Andrew Anagnost, President & CEO, Autodesk

• Investment: $200 million into World Labs, part of a $1 billion fundraising.
• Why World Labs?
  • Deep expertise in spatial reasoning and world models — critical for simulated environments and industrial automation.
  • Autodesk aims to enhance design, manufacturing, and virtual training using advanced simulation AI.
• Commercial Impact:
  • AI is already delivering real value for Autodesk in simulations, design optimization, and construction cycles.
  • Focus on empowering small/mid-sized factories with technology traditionally reserved for industry giants.
  • Notable Quote:

    "There's a massive capacity problem — not enough money, people, and materials to build and rebuild everything … We need to execute more projects with the same amount of people." (31:45)

4. Blue Origin’s Strategic Shift to the Moon

Guest: Dave Limp, CEO, Blue Origin

• News: Blue Origin is pausing its New Shepard space tourism project to focus resources on its lunar program.
• Key Driver:
  • National strategic imperative for the US to maintain leadership on the moon.
  • Blue Origin aims for "lunar permanence" — not just a return to the moon, but establishing a sustained presence.
• Space industry is facing unprecedented demand and a renewed “space race” with global rivals.

5. Apple’s AI Hardware Acceleration

Guest: Mark Gurman, Bloomberg

• Fast-tracked Devices: Smart glasses (with computer vision), AirPods with AI features, and an AI pendant.
• Timeline:
  • AirPods with new AI capabilities may arrive as early as this year, glasses and pendant likely next year.
• Apple’s Approach:
  • Integrating hardware, AI, and services in a unique (Apple) way instead of simply following the “arms race” in AI hardware.
  • Notable Quote:

    "They’re going to get there … hardware blended with AI, blended with software, blended with services." (50:47)

6. Software Sector: Early Earnings Disclosures Amid AI Disruption Fears

Guest: Sally Bakewell, Bloomberg

• Context: Billions in loans tied to private software companies are trading at distressed levels due to fears of AI disruption.
• Notable Moves:
  • Companies like McAfee, Rocket Software, and Perforce are opening up their books to reassure creditors.
  • Private equity and lenders insist loan portfolios remain solid, claiming they see "not even yellow flags" in the sector.

7. Macro Picture: AI and Productivity

Guest: Mary Daly, President, San Francisco Fed

• Insights:
  • Productivity has increased, but it's hard to attribute all gains directly to AI (historical parallels drawn with the '90s).
  • AI-driven automation often leads to one-time cost savings, not always sustained productivity growth.
  • Notable Quote:

    “What we’re looking for is a technology to give us consistently good changes in productivity … That’s the thing that has a sustained productivity growth part.” (1:01:58)

8. Gulf State AI Investments Reach New Heights

Guest: Mike Shepherd, Bloomberg

• Abu Dhabi’s MGX Fund:
  • Deep investments in AI startups (Anthropic, XAI, OpenAI), data centers, and even with major platforms like TikTok.
  • Intent: Diversifying away from oil, “seizing the AI wave.”
• Saudi Arabia:
  • New initiative tying Humane and X (formerly Twitter) into a 500 MW data center in Saudi Arabia; tight integration with Elon Musk’s ventures.

9. Energy Tech: Heron Power’s Mission to Modernize Grids

Guest: Drew Baglino, CEO, Heron Power (ex-Tesla executive)

• Funding: $140 million Series B, with significant A16Z backing.
• Technology: Leveraging four decades of power semiconductor advancements to replace outdated, mechanical grid equipment.
  • Heron products reduce lead times, simplify data center build-outs, and drastically cut grid-to-chip electricity losses.
• Market Opportunity:
  • AI (datacenters), solar, batteries, and new grid build-outs — all require better, more scalable electric infrastructure.
  • Notable Quote:

    “No more steel and oil, replacing it with silicon and software … We’re building with a completely different supply chain that’s way more scalable.” (1:19:16)

10. Social Media Addiction Trial: Zuckerberg to Take the Stand

Guest: Sasha Haworth, Executive Director, Tech Oversight Project

• Importance:
  • Zuckerberg’s court testimony is compared to the “big tobacco moment” for tech — the first time a Big Tech CEO must answer (under oath) for designing products accused of addicting children.
  • Evidence includes internal Meta research allegedly buried showing social media harms.
• Broader Impact:
  • Demand for policy change and congressional action.
  • This trial is expected to be a watershed moment in Big Tech accountability.
  • Notable Quote:

    “He’s never had to answer to that … If you have created a product that is unsafe for kids … you’re going to be held accountable.” (1:34:28)

Memorable Quotes & Timestamps

• Meta–Nvidia Impact:
  • "This is the first big example of Nvidia selling the Grace CPU to market as a standalone product … that's a market extension for them."
    — Ian King, Bloomberg (04:59)
• AI’s Productivity Shift:
  • "We're in the early innings of what is likely to be a $10 trillion capex investment cycle ... there's a regime shift happening in the market."
    — Katie Huberty, Morgan Stanley (18:23)
• Autodesk’s AI Vision:
  • "There's a massive capacity problem — not enough money, people, and materials to build and rebuild everything in the world right now ... [AI] is going to be an enabler to unlock that."
    — Andrew Anagnost, Autodesk (31:45)
• Fed on Productivity:
  • “What we’re looking for is a technology to give us consistently good changes in productivity … That’s the thing that has a sustained productivity growth part.”
    — Mary Daly, San Francisco Fed (1:01:58)
• Blue Origin on Moon Mission:
  • "We want to put boots on the moon. … This time the name of our group inside of Blue is Lunar Permanence."
    — Dave Limp, Blue Origin (41:40)
• Apple’s AI Devices:
  • "Hardware blended with AI blended with software blended with services … before the end of the year."
    — Mark Gurman, Bloomberg (50:47)
• Heron Power’s Grid Vision:
  • "No more steel and oil, replacing it with silicon and software … much more scalable."
    — Drew Baglino, Heron Power (1:19:16)
• Tech on Trial:
  • “He’s never before had to answer to that … This is a judge and jury. This is a court of law. The law comes for everyone.”
    — Sasha Haworth, Tech Oversight Project (1:34:28)

Timeline of Important Segments

| Timestamp | Segment Description | | -------------- | ------------------------------------------------------ | | 00:45 | Meta-Nvidia deal preview and early market moves | | 03:30–07:00 | Deep dive: Meta’s Nvidia chip order, industry analysis | | 13:52–19:00 | Morgan Stanley’s Katie Huberty on the AI investment cycle and sector opportunities | | 21:10–32:13 | Autodesk CEO on $200M World Labs AI investment | | 37:00–41:20 | Blue Origin's Dave Limp on lunar pivot | | 48:45–52:00 | Apple’s next-gen AI wearables (Mark Gurman reporting) | | 53:00–57:37 | Private software firms open earnings books to address AI-driven credit fears | | 1:01:20–1:03:39| San Francisco Fed’s Mary Daly: AI and productivity growth | | 1:06:30–1:10:54| Gulf region’s sovereign AI investments, MGX, Saudi deals (Mike Shepherd) | | 1:14:10–1:21:40| Heron Power’s Drew Baglino on grid innovation, clean energy | | 1:23:20–1:36:05| Zuckerberg to testify in social media addiction trial (Sasha Haworth, Tech Oversight Project) |

Tone & Language

Fast-paced, analytical, and at times sharply critical — especially in segments on Big Tech's market power, social responsibility, and the scale of transformative investments in AI and clean energy. Where relevant, speakers also highlight optimism for technology’s future, but balance this with concerns on social and regulatory impact.

For Listeners Who Missed the Episode

This episode is essential listening for anyone tracking the intersection of AI hardware, the vast investments reshaping the global economy, the rapid evolution of energy and industrial technologies, and the growing regulatory reckoning for Big Tech. The combination of headline scoops, thoughtful market analysis, CEO insights, and real-time regulatory and courtroom drama makes it a standout edition of Bloomberg Tech.