Meta Set to Begin Production of Custom AI Chips in September, Aiming to Cut Reliance on Nvidia
Summary
Meta is set to begin production of its custom AI chips in September, developed with Broadcom and manufactured by TSMC, as the tech giant moves to reduce its dependence on Nvidia GPUs while projecting up to $145 billion in capital expenditures this year.
Key Points
- Meta is on track to begin production of its latest AI-specific chips in September, developed under its Meta Training and Inference Accelerator (MTIA) program in partnership with Broadcom and manufactured by TSMC.
- The new chips are designed to reduce Meta's reliance on GPUs from Nvidia and AMD, and will be used for training ranking and recommendation algorithms, broader AI workloads, and inference across Meta's applications.
- Meta is projecting capital expenditures between $125 billion and $145 billion this year, with plans to deploy 7 gigawatts of compute in 2026 and double that figure in 2027 as it aggressively expands its AI infrastructure.