Meta Deepens AI Chip Partnership With Broadcom Through 2029

Key Moments

Meta and Broadcom have extended their custom AI chip collaboration through 2029, with an initial commitment exceeding one gigawatt of computing capacity.
Broadcom CEO Hock Tan will step down from Meta’s board and shift to an advisory role on Meta’s custom chip strategy under the expanded agreement.
Meta’s first MTIA 300 chip is already running ranking and recommendation systems, with three additional chips planned through 2027 focused on AI inference.

Expanded Long-Term AI Chip Agreement

Meta will deepen its collaboration with chip designer Broadcom to develop multiple generations of custom artificial intelligence processors, under an expanded agreement aimed at supporting Meta’s growing AI capabilities across its family of apps.

According to a joint statement released on Tuesday, the renewed partnership will run until 2029. As part of the arrangement, Meta has made an initial commitment of more than one gigawatt of computing capacity. The companies said this amount of power is roughly equivalent to the electricity consumption of about 750,000 U.S. homes on average.

Governance Shift and Strategic Advisory Role

As a component of the new deal, Broadcom CEO Hock Tan will leave Meta’s board of directors. He will transition to an advisory position focused on Meta’s custom chip strategy, the companies said in their joint announcement.

Industry Context and Market Reaction

Rising AI workloads have significantly increased demand for computing power, prompting major technology firms such as Meta, Google and Amazon to design proprietary chips in an effort to reduce their dependence on Nvidia’s expensive processors.

This surge in custom chip development has positioned Broadcom as one of the leading beneficiaries of the generative AI trend. Broadcom collaborates with customers to create custom processors and also provides infrastructure software.

In extended trading on Tuesday, Broadcom’s shares gained 3.5%, while Meta’s stock showed little movement.

Building Meta’s AI Infrastructure

Meta CEO Mark Zuckerberg said the partnership supports Meta’s large-scale AI ambitions, stating the tie-up helps “build out the massive computing foundation we need to deliver personal superintelligence to billions of people.”

Meta, which last month revealed a roadmap featuring four new chips, described the capacity commitment with Broadcom as “the first phase of a sustained, multi-gigawatt rollout.”

Broadcom’s Ethernet networking technology will also be deployed to link Meta’s fast-expanding clusters of AI computers, according to the announcement.

MTIA Chip Roadmap

The first chip from Meta’s Training and Inference Accelerator (MTIA) program, known as the MTIA 300, is already in production use, powering ranking and recommendation systems at the company. Meta plans to introduce three additional MTIA chips through 2027.

These later MTIA generations are being developed to handle inference, the stage in which AI models process and respond to user queries.

Program / Company	Key Detail	Timeframe
Meta – Broadcom partnership	Custom AI chips with >1 gigawatt initial computing capacity commitment	Agreement extended to 2029
MTIA program	MTIA 300 in production for ranking and recommendations	First chip live
MTIA roadmap	Three additional chips focused on inference	Due through 2027

Board Changes at Meta

In a separate development on Tuesday, Meta said that Tracey Travis, who has served on its board since 2020, will not stand for re-election at the company’s upcoming annual shareholder meeting.