Meta Platforms to Produce In-House AI Chips in September

Meta Platforms will start manufacturing an in-house AI chip in September to lower computing costs and decrease its dependence on Nvidia's expensive graphics processing units. The social media company is co-designing the hardware with Broadcom Inc. and partnering with Taiwan Semiconductor Manufacturing Company for production.

Meta intends to deploy four generations of these custom processors to support data center infrastructure for Facebook and Instagram. This initiative is part of a broader strategy to increase total AI compute power to 14 gigawatts by 2027. This move follows previous targets to deploy 1.3 million GPUs by the end of 2025.

Despite this shift toward custom silicon, Meta expanded an agreement with Nvidia in February to deploy Blackwell and Rubin GPUs alongside Nvidia CPUs. Nvidia continues to hold a dominant market position, maintaining a 74% share of AI inference chips in the first quarter of 2026, though its gains that year trailed the broader semiconductor sector.