Nvidia Enters Server CPU Market with Grace and Vera Chips, Threatening Intel and AMD
In early 2026, Nvidia began selling its Grace server CPUs as a standalone product after previously offering them only in custom-built systems. The company has already shipped over 2.5 million units of the Grace chip by May 2026 and is now introducing an even more powerful successor called Vera. According to reports from Tom's Hardware and statements from Nvidia executive Ian Buck, hundreds of thousands of Grace-based servers have been deployed with major clients like Meta Platforms. Nvidia claims that its new Vera CPU offers a performance advantage over both the Grace chip and x86 architecture processors used by Intel (INTC) and AMD (AMD). The company has already begun delivering these CPUs to customers including OpenAI, Anthropic, and SpaceX. Analysts suggest Arm-based server CPUs—like those from Nvidia—are gaining traction in the market, with shipments doubling year-over-year at the end of 2025. Intel reported a strong performance for its Xeon 6 CPU in Q2 2026 but faces growing competition as Arm-based alternatives gain popularity. AMD has also seen growth in data center revenue and is expected to report further results soon.
