Meta Deepens Broadcom Partnership to Advance Custom AI Chip Development
April 15, 2026 6:40 AM
IH Market News
Meta (NASDAQ:META) has expanded its collaboration with chipmaker Broadcom (NASDAQ:AVGO) to develop multiple generations of in-house artificial intelligence processors, as the company accelerates efforts to scale the infrastructure needed to support AI-driven features across its platforms.
The updated agreement, announced Tuesday, runs through 2029 and includes an initial deployment exceeding one gigawatt of computing power—roughly equivalent to the electricity usage of about 750,000 average U.S. households.
As part of the arrangement, Broadcom’s CEO Hock Tan will step down from Meta’s board and transition into an advisory role focused on the company’s custom silicon strategy, according to a joint statement.
With demand for AI computing surging, major technology firms including Meta, Google and Amazon are increasingly investing in proprietary chip designs to reduce dependence on Nvidia’s high-cost hardware.
This shift has positioned Broadcom as a key beneficiary of the generative AI boom, leveraging its expertise in custom processor design alongside its infrastructure software offerings.
In after-hours trading, Broadcom shares rose 3.5%, while Meta’s stock showed little movement.
The partnership will help “build out the massive computing foundation we need to deliver personal superintelligence to billions of people,” said Meta CEO Mark Zuckerberg.
Meta, which recently outlined plans for four new chip designs, described the initial capacity commitment with Broadcom as “the first phase of a sustained, multi-gigawatt rollout.”
Broadcom’s Ethernet networking solutions will also play a central role in linking Meta’s expanding network of AI data centres.
The first processor from Meta’s Training and Inference Accelerator (MTIA) initiative, the MTIA 300, is already being used to power ranking and recommendation systems. Three additional chip generations are expected by 2027, with later versions focused on inference—enabling AI systems to generate responses to user inputs.
Separately, Meta announced that board member Tracey Travis, who joined in 2020, will not seek re-election at the company’s upcoming annual shareholder meeting.
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Original: Meta Deepens Broadcom Partnership to Advance Custom AI Chip Development
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