Meta's New AI Chips Enter Production in September
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- Meta is on track to begin production of its latest AI-specific MTIA chips in September, per an internal memo cited by Reuters, with at least one chip completing its testing phase in about six weeks.
- Broadcom is handling chip design while TSMC will manufacture the chips, with Samsung supplying RAM, Sandisk providing storage, and Sumitomo Electric providing fiber optic equipment.
- Meta detailed four new MTIA chips in March using a modular chiplet design built for a shorter deployment cadence, planning to use them for ranking and recommendation algorithms, broader AI workloads, and inference.
- Meta expects capital expenditures of $125 billion to $145 billion this year, much of it going toward AI, and plans to deploy 7 gigawatts of compute this year, doubling that figure next year.
- Meta has struck multi-billion-dollar deals with AMD for Instinct GPUs, Amazon for homegrown CPUs, and ARM for recommendation-system compute as part of its broader AI buildout.
- The MTIA chips are designed to cut GPU spending at Nvidia and AMD, a strategy mirrored by OpenAI (with Broadcom), Anthropic (reportedly with Samsung), Amazon, and Google.
Why it matters: Meta's MTIA chips entering production in September gives the company a path to reduce GPU costs from Nvidia and AMD, as it ramps capital expenditures to $125-145B this year. The modular chiplet design — built with Broadcom, TSMC, Samsung, Sandisk, and Sumitomo — is meant for shorter deployment cycles than buying off-the-shelf silicon.
