Broadcom CEO Hock Tan.
Lucas Jackson | Reuters
Meta and Broadcom on Tuesday announced a sweeping deal that extends an existing partnership between the two companies for the design of Meta’s custom in-house AI accelerators through 2029.
At the same time, Meta said Broadcom’s CEO, Hock Tan, told Meta last week that he has decided not to stand for reelection to Meta’s board according to a filing. Tan joined Meta’s board in 2024.
Meta has committed to an initial deployment of 1 gigawatt of its Training and Inference Accelerators according to a statement. The deal will eventually see Meta deploying multiple gigawatts of chips based on Broadcom technology.
Broadcom shares rose 3% in extended trading after the announcement. Meta stock was flat.
Meta unveiled four new versions of its in-house MTIA chips in March. It first unveiled the custom silicon in 2023, following on the heels of similar chip programs at Google and Amazon.
Hyperscalers are seeking alternatives to the costly, constrained graphics processing units from Nvidia and AMD, as they hustle to power AI data centers.
They’re making GPU alternatives called application-specific integrated circuits, or ASICs, that are smaller and cheaper than the general-purpose AI workhorse GPUs, but are limited to performing a narrower set of tasks.
Google was first to the custom ASIC game, releasing its first Tensor Processing Unit in 2015. Amazon was next, with its first custom chip announced in 2018. While these tech giants incorporate their AI chips as part of their respective cloud computing platforms so customers can access them, Meta’s MTIA chips are used entirely for internal purposes.
The deal comes two weeks after Broadcom announced a long-term agreement with Google for producing its TPUs, and said Anthropic would access 3.5 gigawatts worth of the in-house Google chip.
Broadcom shares are up 10% so far in 2026, while the S&P 500 index has gained about 2% over the same period.
Tracey Travis, who last year retired from her position as Estée Lauder’s finance chief, will leave Meta’s board after taking a board seat in 2020, Meta said.
