Meta to start making AI chips in September
What's the story
Meta plans to start manufacturing its own artificial intelligence (AI) chip from September, an internal memo has revealed. The initiative is part of a larger strategy to boost the company's overall computing power to 14 gigawatts by next year. The custom-designed chip, codenamed Iris, is part of a multi-generation project for Meta Training and Inference Accelerators (MTIA) that will be designed in-house.
Technological advancement
Iris chip to boost Meta's AI capabilities
The Iris chip is a major step forward in Meta's efforts to improve the artificial intelligence that powers its Facebook and Instagram platforms. The testing of the chip was completed in just six weeks with no major issues, indicating strong progress for an internal project that has struggled since its inception over five years ago.
Strategic partnerships
Meta collaborates with Broadcom and TSMC for chip production
Meta has customized the Iris chip to meet its specific needs and is working with Broadcom for design assistance and Taiwan Semiconductor Manufacturing Co (TSMC) for production. This strategy could help the company cut down on its huge computing costs while gaining more independence from chip suppliers like NVIDIA and Advanced Micro Devices (AMD).
Production schedule
Meta's aggressive AI chip rollout strategy
Meta unveiled the Iris chip under its technical name in March, along with three other AI processors. The company plans to launch a new chip roughly every six months until 2027. This is much faster than the industry standard of releasing AI chips at intervals of a year or more.
Infrastructure growth
Major investments in AI infrastructure and supply chain agreements
This year, Meta plans to deploy seven gigawatts of computing infrastructure and double that by 2027. The company expects to spend up to $145 billion on AI infrastructure this year, a big chunk of Big Tech's over $700 billion expected spending on the technology. To support this expansion, Meta has signed long-term supply agreements with Samsung Electronics for memory chips, Sandisk for flash storage, and Sumitomo Electric for fiber-optic equipment.