Meta extends custom chips deal with Broadcom

Meta will work with chip designer Broadcom to produce several generations of custom artificial intelligence processors under an expanded deal as the social media giant races ‌to build out the computing capacity needed to power AI features across its apps. The latest announcement extends the tie-up until 2029 and includes an initial commitment of over one gigawatt of computing capacity, enough to power roughly 750,000 U.S. homes on average. Broadcom’s CEO Hock Tan would leave Meta's board and ⁠move to an advisory role on its custom chip strategy.

As AI drives a surge in computing demand, big technology companies such as Meta, Google and Amazon are designing their own chips to reduce reliance on Nvidia's costly processors. The custom chip boom has made Broadcom one of the biggest winners of generative AI. The company works with clients to develop custom processors and supplies infrastructure software.

Meta CEO Mark Zuckerberg said, “The tie-up helps "build out the massive computing foundation we need to deliver personal superintelligence to billions of people.”

The company, which last month unveiled a roadmap of four new chips, said the initial capacity commitment with Broadcom was "the first phase of a ⁠sustained, multi-gigawatt rollout."

Broadcom's Ethernet networking technology will also be used to connect Meta's rapidly growing clusters of AI computers.