Nvidia expands Vera CPU adoption with Modal as AI infrastructure push gains traction

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Nvidia expands Vera CPU adoption

Highlights

Nvidia's Vera CPU demonstrates double the AI agent workload capacity versus current Intel and AMD chips in Modal's early testing, spurring initial adoption.
Modal, after raising $750 million at a $15.75 billion valuation, projects $1 billion in sales over the next year with revenue up over 15 times year-over-year.
Nvidia targets $20 billion in Vera chip sales this fiscal year, with major adopters including Modal, OpenAI, Anthropic, Oracle, and Perplexity, signaling broader AI infrastructure market penetration.

Modal adds Vera chips for AI agent workloads

As reported by Reuters, Modal says it plans to start using Nvidia's new Vera central processor to host AI agents, marking the first time the cloud-computing startup supports Nvidia's CPU design. Until now, Modal has run those workloads only on chips from Intel and AMD, and the shift requires deep software changes on its side.

Modal says early tests show the Nvidia chip doubles the amount of work AI agents can complete compared with Intel and AMD chips currently on the market. Chief Executive Erik Bernhardsson says the company is not replacing its existing suppliers and instead will operate Nvidia hardware alongside its current Intel and AMD offerings in a mixed fleet.

Bernhardsson says the tests compare Vera with chips already available from Intel and AMD, while both rivals are developing newer models that could reduce Nvidia's advantage. He says Modal will test those products when they become available and keep assigning jobs to whichever hardware performs best.

Funding momentum supports broader AI infrastructure competition

Modal's decision comes shortly after the company raises $750 million in a funding round led by Accel at a $15.75 billion valuation. The startup says it is on track to record $1 billion in sales over the next year, with usage of its services tripling and revenue growing more than 15 times year over year.

For Nvidia, the win offers another sign that its effort to break into the CPU market is gaining traction with major AI customers. The company has told investors it expects at least $20 billion in Vera chip sales this fiscal year and values the market at roughly $200 billion.

Nvidia has also said OpenAI, Anthropic and Oracle plan to use Vera chips, along with AI startups such as Perplexity. The growing customer list suggests the company is trying to deepen its role in AI infrastructure by pairing its established accelerator business with a broader computing platform.

Our earlier article on the mounting strain on U.S. AI data center expansion explained how rising financing costs, construction delays and power constraints are slowing the buildout of new compute capacity. We noted that only a fraction of planned projects are viewed as realistic, with investor caution growing as cost overruns and community pushback complicate timelines and returns.

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