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Meta’s Gigawatt Gamble: Broadcom Deal Reshapes AI Silicon Wars
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Meta’s Gigawatt Gamble: Broadcom Deal Reshapes AI Silicon Wars

WebProNews·Name·about 1 month ago
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#meta#broadcom#custom#nvidia#chips#article
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Meta Platforms just locked in a multiyear pact with Broadcom. The deal commits over one gigawatt of custom AI chips. Enough power for 750,000 U.S. homes. And it’s only phase one. Broadcom shares jumped 3% the day after. Year-to-date gains now top 14%. Meta stock edged up 1%. Investors see clear winners here. Broadcom, especially, amid its recent string of AI victories. The partnership spans chip design, packaging, and networking. It targets Meta’s Training and Inference Accelerator, or MTIA. These chips handle AI training and real-time inference for apps like Instagram and WhatsApp. Broadcom will supply tech through 2029. Multiple generations ahead. The next MTIA uses a 2-nanometer process—the first custom AI accelerator on that node, per Broadcom’s investor release . Scale forces changes. Broadcom CEO Hock Tan steps off Meta’s board. He shifts to special advisor on custom chips. Conflict avoidance, given the deal’s size. No financial terms disclosed.…

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