Meta extends Broadcom AI chip partnership through 2029

US tech firms Meta and Broadcom announced Tuesday a broad agreement to extend their existing partnership on the design of Meta’s custom in-house AI accelerators through 2029, as the Facebook parent ramps up investment in computing infrastructure for artificial intelligence.

In a joint statement, Meta said it has committed to deploy 1 gigawatt of its Meta Training and Inference Accelerators, or MTIA, marking a major expansion of its custom chip strategy.

The announcement came alongside a governance change, with Meta saying that Broadcom CEO Hock Tan informed the company last week that he will not stand for reelection to its board of directors. Tan joined Meta’s board in 2024.

Broadcom shares rose 3% in extended trading following the news.

Meta introduced four new versions of its in-house MTIA chips in March. The company first unveiled the custom silicon program in 2023, following similar efforts by Google and Amazon to develop chips tailored for AI workloads.

Large technology companies have increasingly been pursuing alternatives to the expensive and supply-constrained graphics processing units produced by Nvidia and AMD as they race to build out AI data centers.

These alternatives, known as application-specific integrated circuits, or ASICs, are generally smaller and cheaper than general-purpose GPUs but are designed for a narrower range of tasks.

Unlike Google and Amazon, which offer their custom AI chips through cloud platforms to external customers, Meta uses its MTIA chips solely for internal operations.