Broadcom, Meta Sign Multi-Year AI Chip Deal; Shares Rise Nearly 3%

According to Meta Platforms, the company has entered into a multi-year AI chip partnership with Broadcom, with the agreement announced on Tuesday. Following the news, Broadcom’s shares rose nearly 3% in after-hours trading.

Under the agreement, Broadcom will provide key technologies to support training and inference accelerators for Meta’s AI workloads. The collaboration is expected to extend through 2029 and builds on the companies’ existing relationship. The initial phase of the program commits more than 1GW of infrastructure capacity, marking the first step toward large-scale AI data center deployment.

Meta stated that the infrastructure will be used to develop advanced AI data centers, enabling the deployment of generative AI technologies across its platforms, including WhatsApp, Instagram, and Threads, reaching billions of users worldwide.

The deployment will be centered on Meta’s in-house MTIA chips, integrated through Broadcom’s XPU platform. The solution will encompass compute logic, memory subsystems, and high-speed I/O architectures, while also laying the groundwork for future multi-generation chip development.

Hock Tan, CEO of Broadcom, noted that the partnership will continue to deepen strategic collaboration and accelerate AI innovation, with the MTIA deployment representing only the beginning of a long-term roadmap.

Meanwhile, Mark Zuckerberg, CEO of Meta, emphasized that the company is working closely with Broadcom across key areas such as chip design, packaging, and networking to build scalable computing infrastructure capable of supporting next-generation AI applications.