TLDR
- Meta Platforms (META) stock fell 5% as the company announced a new AI infrastructure deal.
- Australia’s Firmus Technologies will supply Meta with GPU compute capacity in Southeast Asia.
- The deal builds on Meta’s existing Nvidia GB300 NVL72 setup at Firmus’s Melbourne data center.
- Meta’s capital spending hit $31.1 billion in Q2, while free cash flow fell 91%.
- Wall Street holds a Strong Buy rating on META, with a price target implying 12% upside.
Meta Platforms (META) stock dropped 5% as the company unveiled a new AI computing partnership. The deal is with Australian firm Firmus Technologies.
Under the agreement, Firmus will supply Meta with graphics processing unit compute capacity. The capacity comes from new AI factories being built across Southeast Asia.
Meta plans to use this power for AI research, model development, and training. Financial terms of the deal were not disclosed.
Firmus and Meta announce strategic AI infrastructure deals across Asia-Pacific
— FinancialJuice (@financialjuice) September 28, 2026
Firmus builds and runs AI factories for large scale computing workloads. It offers high-performance computing, cloud, and AI-as-a-service tools for businesses and governments.
Building on an Existing Partnership
This new deal expands on work Firmus already does with Meta in Australia. Meta already runs Nvidia GB300 NVL72 systems at Firmus’s Melbourne data center.
Firmus says that setup is the largest deployment of Nvidia Blackwell Ultra systems in the Southern Hemisphere. The new Southeast Asia facilities will run on Nvidia’s DSX AI Factory platform.
That platform will work alongside Firmus’s own HyperCube cooling technology. AI chips generate a lot of heat, so cooling systems matter for cost and performance.
Firmus’s liquid-cooled design aims to cut energy use and operating costs. This setup could help Meta scale its AI training needs.
Meta’s Heavy AI Spending
The Firmus deal lands as Meta keeps increasing its capital spending on AI infrastructure. In the second quarter, Meta’s capital spending hit $31.1 billion.
Free cash flow fell 91% during that period, landing at $784 million. Meta has said it could spend up to $145 billion on capital projects this year.
For Firmus, the agreement marks a step forward in its Asia-Pacific expansion. Landing a client the size of Meta adds weight to its infrastructure business.
The contract also gives Firmus more predictable revenue from GPU capacity. That could help the company as it moves toward a planned $5 billion initial public offering in Australia.
If completed, that IPO could rank as Australia’s second-largest listing to date. Firmus designs and operates AI factories that support large scale computing workloads for outside clients.
Wall Street still holds a Strong Buy consensus rating on META stock. That rating is based on 39 Buy ratings and six Hold ratings issued over the past three months.
The average price target among analysts sits at $798.74 per share. That target implies upside of about 12% from current levels.
Nvidia (NVDA) stock also ticked higher following the news, up 2%. Nvidia’s chips remain central to both companies’ AI infrastructure plans.
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