Meta to start producing in-house AI chip in September, targeting 14 gigawatts of capacity
13 Sources
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Meta's new AI chips will begin production in September
In a bid to lower its GPU costs amid an unprecedented component shortage, Meta is on track to start making the latest versions of its AI-specific chip in September, Reuters reported, citing an internal memo. At least one chip sailed through its testing phase in about six weeks, the memo said. Meta
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EXCLUSIVE: Meta to put AI chip into production in September as it looks to double computing capacity, memo shows
NEW YORK/SAN FRANCISCO, July 9 (Reuters) - Meta Platforms (META.O), opens new tab plans to start manufacturing an artificial intelligence chip from September as part of its plan to boost overall computing power to 14 gigawatts next year, showed an internal memo reviewed by Reuters. The tech firm's
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Meta to put AI chip into production in September as it looks to double computing capacity, Reuters reports
Meta Platforms plans to start manufacturing an artificial intelligence chip from September as part of its plan to boost overall computing power to 14 gigawatts next year, according to an internal memo reviewed by Reuters. The tech firm's data center chip, code-named "Iris", is part of a
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Meta to put its own AI chip into production in September, aiming to double computing capacity
The move would deepen Meta's effort to wean its data centres off Nvidia GPUs, according to Reuters. Meta plans to put its own artificial intelligence chip into production in September and is aiming to roughly double the computing capacity across its data centres, Reuters reported on Thursday,
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Meta to start production of Iris AI chip in September 2026
Meta $META plans to begin manufacturing its in-house AI chip, code-named Iris, in September, according to an internal memo reviewed by Reuters. Falling under the umbrella of Meta's MTIA program -- short for Meta Training and Inference Accelerators -- Iris is one of four planned chip generations
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Meta to put AI chip into production in September as it looks to double computing capacity, memo shows
Meta Platforms plans to manufacture its own artificial intelligence chip starting September. This initiative aims to significantly increase the company's overall computing power by next year. The custom-designed chip, code-named Iris, is part of a multi-generation project. Meta is working with
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Meta aims to make its own chips as AI giants strive for independence from strained supply chain
Mark Zuckerberg's Meta plans to design its own artificial intelligence chips in-house starting in September - part of an industry-wide effort by the biggest names in AI to start making their own chips amid ongoing high demand. Zuck's initiative, known internally as "Iris," centers on developing
[8]
Benchmark reiterates Hold on Meta stock after AI infrastructure memo By Investing.com
Investing.com - Benchmark reiterated a Hold rating on Meta Platforms Inc. (NASDAQ:META) following a leaked internal memo detailing the company's artificial intelligence infrastructure plans. The stock trades at $668.69, up 8.33% over the past week, though InvestingPro analysis suggests the shares
[9]
BofA Securities reiterates Buy on Meta stock on chip development By Investing.com
Investing.com - BofA Securities reiterated a Buy rating and $835.00 price target on Meta Platforms Inc. (NASDAQ:META) following reports of the company's custom silicon chip development and capacity expansion plans. The stock currently trades at $631.48, and InvestingPro analysis suggests the
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Meta to produce AI chips in September, memo shows
STORY: :: A memo seen by Reuters shows that Meta plans to produce AI chips this September :: The move will likely help Meta gain more independence from chip suppliers such as Nvidia :: Katie Paul, Tech Correspondent :: Meta / Archive "In the world of AI, those who control their infrastructure
[11]
U.S. chip stocks rebound as Meta plans to double GW capacity By Investing.com
Investing.com -- U.S. chip stocks bounced back Thursday, recovering some of the ground lost earlier in the week, after a rally in Chinese semiconductor shares helped steady investor nerves following a selloff following Samsung Electronics' latest results. Additionally, fears of an AI CapEx slowdown
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Meta to put AI chip into production in September as it looks to double computing capacity, memo shows
NEW YORK/SAN FRANCISCO, July 9 (Reuters) - Meta Platforms plans to start manufacturing an artificial intelligence chip from September as part of its plan to boost overall computing power to 14 gigawatts next year, showed an internal memo reviewed by Reuters. The tech firm's data center chip,
[13]
Meta falls as massive AI infrastructure spending plans overshadow chip progress By Investing.com
Investing.com -- Meta Platforms (NASDAQ:META) shares declined 2.6% Thursday morning as the company's ambitious plans to double its computing capacity reminded investors of the astronomical capital expenditures required to win the artificial intelligence race. While the social media giant announced
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Meta plans to begin manufacturing its custom AI chip, code-named Iris, in September 2026 as part of its MTIA program. The chip cleared testing in just six weeks and will be produced by TSMC with Broadcom's design support. Meta aims to double its computing capacity to 14 gigawatts by 2027 while reducing dependence on Nvidia and AMD GPUs.
Meta AI Chip Enters Production After Rapid Testing Phase
Meta plans to start manufacturing its in-house AI chip, code-named Iris, in September 2026, according to an internal memo reviewed by Reuters
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. The Meta AI chip cleared its bug-testing phase in approximately six weeks without encountering major issues, signaling positive momentum for an effort that has struggled since its launch more than half a decade ago2
. This rapid testing timeline represents a significant milestone for Meta's custom silicon strategy, which aims to reshape how the company powers Facebook and Instagram's AI systems.
Source: ET
The chip falls under Meta's MTIA program, short for Meta Training and Inference Accelerator, which encompasses four generations of processors designed specifically for the company's AI workloads
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. Meta is working with Broadcom to help design the chip and has tapped Taiwan's TSMC to manufacture it2
. Broadcom has indicated that newer MTIA parts will be among the first custom AI chips built on a 2-nanometre process4
. The company is also buying RAM from Samsung, storage from Sandisk, and fiber optic equipment from Sumitomo Electric to support its infrastructure expansion1
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Source: TechCrunch
Aggressive Deployment Schedule to Reduce Reliance on Nvidia
Meta unveiled Iris under its technical name in March alongside three other AI processors, planning to launch a chip approximately every six months through 2027
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. This cadence represents a significantly more aggressive schedule than the annual or slower release cycles common across the industry4
. The company is taking a modular approach to designing these chips, using modular chiplets and incorporating the latest AI workload insights and hardware technologies1
.The custom AI chip is intended to augment the large quantities of graphics processing units that Meta purchases from Nvidia and AMD, not replace them entirely
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. However, adopting the latest GPUs at a firm as large as Meta "has been a heavy lift, and it has cost us time," the internal memo revealed2
. By developing custom silicon tailored to its specific needs, Meta aims to lower its massive computing costs and gain more independence from chip suppliers2
.Massive Infrastructure Push to Double Computing Capacity
Meta plans to deploy seven gigawatts of computing infrastructure in 2026 and double that number to 14 gigawatts in 2027, according to the memo
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. The company expects capital expenditures between $125 billion and $145 billion this year, with a significant portion directed toward AI infrastructure1
. This represents a substantial share of Big Tech's more than $700 billion projected outlay on the technology2
.To support this expansion, Meta has secured long-term, multi-year supply agreements with Samsung Electronics for memory chips, Sandisk for flash storage, and Sumitomo Electric for fiber-optic equipment
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. Such agreements have become critical for data center expansion targets amid a memory chip shortage that has prompted companies such as Apple to raise prices3
. Memory and chip prices have risen rapidly enough that "chipflation" has become a macroeconomic concern, according to Morgan Stanley analysts2
.Related Stories
Strategic Shift in In-House AI Chip Development
Meta intends to use the MTIA chips for training models for its ranking and recommendation algorithms, broader AI workloads, and inference aimed at its applications
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. For now, MTIA has largely handled inference work—the day-to-day job of serving predictions once a model has been trained4
. The MTIA 300 is already in production for ranking and recommendation systems, while the 450 and 500, aimed at generative image and video inference, are slated for mass deployment through 20274
.Meta isn't alone in pursuing in-house AI chip development to stem capital flowing to Nvidia. OpenAI unveiled an inference processor it is building with Broadcom, while Anthropic is reportedly considering developing its own chips with Samsung
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. Amazon and Google both develop their own chips for training and inference, and numerous startups are building in the space to meet skyrocketing demand1
. The company has also struck a multi-billion dollar deal with AMD for its Instinct GPUs and a deal with Amazon to use the cloud giant's homegrown CPUs for AI-related needs1
.References
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