Meta is reportedly in the process of testing an in-house chip designed for AI training, as part of its strategy to lessen its dependence on hardware suppliers like Nvidia.
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This chip, tailored for AI-specific tasks, was developed in collaboration with TSMC, a Taiwan-based company. Meta is currently conducting a small-scale trial of the chip and intends to increase production if the initial tests yield positive results.
While Meta has previously utilized custom AI chips, those were primarily for running models rather than training them. Reuters also points out that several of the company’s chip design initiatives have been canceled or scaled back after not meeting internal benchmarks.
This year, Meta anticipates spending $65 billion on capital expenditures, a significant portion of which is directed towards Nvidia GPUs. If the company can reduce even a small amount of these costs by transitioning to its own chips, it would represent a substantial advantage for the social media giant.
Sources indicate that Meta has initiated a limited deployment of the chip and plans to expand production for broader application if the testing proves successful.The initiative to create in-house chips is part of Meta’s long-term strategy to lower its considerable infrastructure expenses as it invests heavily in AI tools to foster growth.
The company, which also owns Instagram and WhatsApp, projects total expenses between $114 billion and $119 billion for 2025, including up to $65 billion in capital expenditures primarily driven by investments in AI infrastructure.One source mentioned that Meta’s new training chip acts as a dedicated accelerator, specifically designed for AI tasks, potentially making it more energy-efficient than the integrated GPUs typically used for such workloads.
Meta is collaborating with TSMC to produce this chip, according to another source. The testing phase commenced after Meta completed its first “tape-out” of the chip, marking a significant milestone in silicon development that involves sending an initial design through a chip manufacturing process. Typically, a tape-out can cost tens of millions of dollars and take about three to six months to complete, with no assurance of success. If the test fails, Meta will need to troubleshoot the issue and repeat the tape-out process.
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