Meta, Broadcom Announce Extension of AI Chip Deal Through 2029
In a joint statement, Meta said it has committed to deploy 1 gigawatt of its Meta Training and Inference Accelerators, or MTIA, marking a major expansion of its custom chip strategy.
The agreement comes as Meta intensifies efforts to scale its in-house silicon capabilities, positioning itself more aggressively in the race to power next-generation AI systems.
Alongside the announcement, the company disclosed a governance shift. Meta said that Broadcom CEO Hock Tan informed the company last week that he will not stand for reelection to its board of directors. Tan joined Meta’s board in 2024.
Shares of Broadcom climbed 3% in extended trading following the development, reflecting investor optimism around the expanded partnership.
Meta has been steadily building out its proprietary chip program, introducing four updated MTIA versions in March. The initiative, first revealed in 2023, mirrors similar moves by Google and Amazon to create specialized processors tailored for artificial intelligence workloads.
Major technology firms are increasingly seeking alternatives to costly and supply-limited graphics processing units produced by Nvidia and AMD, as competition intensifies to construct large-scale AI data centers.
These alternatives, known as application-specific integrated circuits, or ASICs, are generally smaller and cheaper than general-purpose GPUs but are designed for a narrower range of tasks.
Unlike Google and Amazon, which provide their custom AI chips to external clients via cloud services, Meta deploys its MTIA hardware exclusively for internal use.
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