Meta commits to one gigawatt of custom chips with Broadcom as Hock Tan agrees to leave board
Hock Tan, CEO of Broadcom.
Lucas Jackson | Reuters
Meta and Broadcom announced a comprehensive agreement on Tuesday that extends the existing partnership between the two companies through 2029 for the design of Meta’s proprietary in-house AI accelerators.
At the same time, Meta said Broadcom CEO Hock Tan told Meta last week that Meta had decided not to seek re-election to the board, according to a report. filing. Tan joined Meta’s board of directors in 2024.
Meta has committed to an initial deployment of 1 gigawatt of its Training and Inference Accelerators. expression. The deal will eventually enable Meta to distribute multiple gigawatts of chips based on Broadcom technology.
Broadcom shares rose 3% in extended trading following the announcement. Commodity stock remained flat.
Meta introduced four new versions of its in-house MTIA chips in March. It first introduced custom silicon in 2023, following similar chip programs at Google. Amazon.
As hyperscalers look to power AI data centers, they are looking for alternatives to expensive, limited graphics processing units from Nvidia and AMD.
They make GPU alternatives called application-specific integrated circuits, or ASICs, that are smaller and cheaper than general-purpose AI workhorse GPUs but are limited to performing a narrower set of tasks.
Google was the first to explore custom ASIC gaming and released its first Tensor Processing Unit in 2015. Amazon was next, and its first custom chip was announced in 2018. While these tech giants include AI chips as part of their cloud computing platforms for customers to access, Meta’s MTIA chips are used entirely for in-house purposes.
The deal comes two weeks after Broadcom announced a long-term deal with Google to produce its TPUs, saying Anthropic would reach 3.5 gigawatts of its in-house Google chip.
Broadcom shares are up 10% so far in 2026, while the S&P 500 index is up about 2% over the same period.
Tracey Travis, who retired as Estée Lauder’s chief financial officer last year, will leave Meta’s board of directors after taking the board seat in 2020, Meta said.
