Meta Unveils Custom AI Chip Plans to Cut Nvidia Dependence
Meta's stock rose Tuesday after the company announced plans to deploy its own custom AI chips in data centers by early 2027. The MTIA 450, also known as Arke, is Meta's third-generation processor being developed with Broadcom and TSMC. This chip aims to reduce reliance on Nvidia hardware for running AI workloads.
Meta's vice president of engineering, Yee Jiun Song, told Bloomberg that each new chip generation delivers better performance per watt of energy and per dollar spent compared to off-the-shelf options. The company is currently testing the Arke chip, with a fourth-generation version, Astrid, expected to finish design work in about a month and enter data centers by the end of 2027.
The move could help Meta cut costs on AI infrastructure and energy consumption. Song stated that at a scale of over a gigawatt's worth of custom chips per year, a 30% cost increase is not feasible. The company developed the Arke chip in partnership with Broadcom for design and TSMC for production.