Meta Platforms shares surged nearly 7.5% to $677 on July 10 after a report revealed the company plans to begin manufacturing its custom AI chip, code-named Iris, later this year. The chip will be developed in partnership with Broadcom and TSMC, aiming to significantly boost Meta’s computing capacity for artificial intelligence workloads, according to livemint.com.
The initiative follows Meta’s strategy to enhance its AI infrastructure by producing proprietary chips tailored for its needs. The company is collaborating with semiconductor firms Broadcom and TSMC, leveraging their manufacturing expertise. This move comes amid a broader industry trend where tech giants invest in in-house AI hardware to optimize performance and reduce reliance on third-party suppliers, livemint.com reported.
Meta’s entry into AI chip production places it alongside other major technology firms that have developed custom AI processors to handle increasing demands from AI applications. This development could impact the competitive landscape in AI hardware, as companies seek to improve efficiency and reduce costs. Meta’s stock has rebounded strongly in July, rising 20% so far after a decline in June, reflecting investor optimism about its AI ambitions, according to livemint.com.
Meta’s plan to start AI chip production this year marks a key milestone in its AI strategy. The company’s shares closed at $677 on July 10, extending gains from the announcement. The collaboration with Broadcom and TSMC is expected to accelerate Meta’s AI capabilities as it scales its computing infrastructure for future applications, livemint.com stated.