diff --git a/packages/cli/src/lib/bundle/config.ts b/packages/cli/src/lib/bundle/config.ts
index 11b9e7aa2f..2d39570339 100644
--- a/packages/cli/src/lib/bundle/config.ts
+++ b/packages/cli/src/lib/bundle/config.ts
@@ -20,6 +20,7 @@ import ForkTsCheckerWebpackPlugin from 'fork-ts-checker-webpack-plugin';
 import ModuleScopePlugin from 'react-dev-utils/ModuleScopePlugin';
 import { BundlingPaths } from './paths';
 import { loaders } from './loaders';
+import { optimization } from './optimization';
 // import checkRequiredFiles from 'react-dev-utils/checkRequiredFiles';
 // import ModuleNotFoundPlugin from 'react-dev-utils/ModuleNotFoundPlugin';
 // import errorOverlayMiddleware from 'react-dev-utils/errorOverlayMiddleware';
@@ -60,6 +61,7 @@ export function createConfig(options: BundlingOptions): webpack.Configuration {
       publicPath: '/',
       filename: 'bundle.js',
     },
+    optimization: optimization(),
     plugins: [
       new HtmlWebpackPlugin({
         template: paths.targetHtml,
diff --git a/packages/cli/src/lib/bundle/optimization.ts b/packages/cli/src/lib/bundle/optimization.ts
new file mode 100644
index 0000000000..89679c8026
--- /dev/null
+++ b/packages/cli/src/lib/bundle/optimization.ts
@@ -0,0 +1,59 @@
+/*
+ * Copyright 2020 Spotify AB
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { Options } from 'webpack';
+
+export const optimization = (): Options.Optimization => {
+  return {
+    runtimeChunk: 'single',
+    splitChunks: {
+      automaticNameDelimiter: '-',
+      cacheGroups: {
+        default: false,
+        // Put all vendor code needed for initial page load in individual files if they're big
+        // enough, if they're smaller they end up in the main
+        packages: {
+          chunks: 'initial',
+          test: /[\\/]node_modules[\\/]/,
+          name(module: any) {
+            // get the name. E.g. node_modules/packageName/not/this/part.js
+            // or node_modules/packageName
+            const packageName = module.context.match(
+              /[\\/]node_modules[\\/](.*?)([\\/]|$)/,
+            )[1];
+
+            // npm package names are URL-safe, but some servers don't like @ symbols
+            return packageName.replace('@', '');
+          },
+          filename: 'module-[name].[chunkhash:8].js',
+          priority: 10,
+          minSize: 100000,
+          minChunks: 1,
+          maxAsyncRequests: Infinity,
+          maxInitialRequests: Infinity,
+        } as any, // filename is not included in type, but we need it
+        // Group together the smallest modules
+        vendor: {
+          chunks: 'initial',
+          test: /[\\/]node_modules[\\/]/,
+          name: 'vendor',
+          priority: 5,
+          enforce: true,
+        },
+      },
+    },
+  };
+};