Meta Platforms has announced a significant expansion of its partnership with Broadcom, committing to deploy one gigawatt of custom artificial intelligence chips based on Broadcom technology as part of a broader multi-gigawatt agreement between the two companies. This deal extends their collaboration on Meta's custom in-house AI accelerators through 2029, with plans to eventually scale to multiple gigawatts of chips. The initial deployment will focus on Meta's Training and Inference Accelerators (MTIA), which Broadcom states will be the first AI silicon to utilize a 2-nanometer process [1].
In conjunction with the chip deal, Broadcom CEO Hock Tan has decided not to stand for reelection to Meta's board, a position he joined in 2024. This departure was disclosed in a regulatory filing. Additionally, Tracey Travis, former Estée Lauder finance chief and Meta board member since 2020, will also leave the board [1].
Following the announcement, Broadcom shares rose 3% in extended trading, while Meta's stock remained flat. Broadcom shares have gained 10% so far in 2026, compared to a 2% rise in the S&P 500 index over the same period. On Broadcom's March earnings call, Hock Tan emphasized the ongoing strength of Meta's MTIA roadmap, stating that the company is currently shipping and will scale to multiple gigawatts in 2027 and beyond, countering recent analyst reports [1].
Meta's move to develop and deploy custom ASICs, like its MTIA chips, follows similar strategies by Google and Amazon, as large technology companies seek alternatives to expensive and supply-constrained GPUs from Nvidia and AMD for AI data centers. Unlike Google and Amazon, which offer their AI chips to cloud customers, Meta's MTIA chips are used exclusively for internal operations. The Meta-Broadcom deal comes shortly after Broadcom's long-term agreement with Google for producing TPUs, with Anthropic set to access 3.5 gigawatts of Google's in-house chips [1].
Meta has made a series of deals since its January commitment to spend up to $135 billion on AI in 2026, aiming to keep pace with other major technology firms [1].
CONCLUSION
Meta's expanded partnership with Broadcom marks a major investment in custom AI chip infrastructure, signaling its intent to compete aggressively in the AI space. The market responded positively for Broadcom, reflecting confidence in the deal's scale and future growth prospects. Leadership changes on Meta's board accompany this strategic shift, underscoring the company's evolving priorities.