**Broadcom Expands Partnership with Meta to Develop AI Chips**
Broadcom (NASDAQ: AVGO) and Meta Platforms (NASDAQ: META) have announced a multi-billion dollar expansion of their strategic partnership aimed at developing custom artificial intelligence (AI) chips, known as Meta Training and Inference Accelerator (MTIA) chips, through 2029. This collaboration is part of Meta’s initiative to enhance its AI infrastructure and aims to deploy more than 1 gigawatt of computing capacity using Broadcom’s specialized chips.
**Significant Deal Highlights**
As per the agreement, Broadcom will support Meta’s goal of achieving “superintelligence” by designing a suite of processors to serve Meta’s data centers. In recent developments, Broadcom’s CEO Hock Tan will step down from Meta’s board but remain as an advisor. This partnership follows recent deals with Google and Anthropic, and Broadcom sees potential AI chip sales exceeding $100 billion by 2027, compared to $8.4 billion in AI sales last quarter. Meta plans to invest between $115 billion and $135 billion in capital expenditures in AI by 2026.
