Meta announced on Tuesday that it will partner with chip design company Broadcom under an expanded agreement to jointly produce several generations of custom artificial intelligence processors. The social media giant is rushing to build computing power to support artificial intelligence capabilities in its apps.
The deal announced Tuesday extends the partnership through 2029 and includes an initial commitment of more than 1 gigawatt of computing power, enough to power an average of about 750,000 U.S. homes.
The two parties said in a joint statement that as part of the deal, Broadcom CEO Chen Fuyang will leave Meta's board of directors and become an advisor on its custom chip strategy.
As artificial intelligence drives a surge in computing demand, big tech companies like Meta, Google and Amazon are designing their own chips to reduce their reliance on Nvidia's pricey processors.
The boom in custom chips has made Broadcom one of the biggest winners in generative artificial intelligence. The company works with customers to develop custom processors and provides infrastructure software.
Meta CEO Mark Zuckerberg said the partnership will help "build the massive computing infrastructure we need to deliver personal superintelligence to billions of people."
The company unveiled a roadmap for four new chips last month and said the initial capacity partnership with Broadcom was the "first phase of ongoing, multi-gigawatt deployment."
Broadcom's Ethernet technology will also be used to connect Meta's rapidly growing cluster of artificial intelligence computers.
Additionally, Meta announced on Tuesday that Tracy Travis, who has served as a company director since 2020, will not seek re-election at the company's annual shareholder meeting.