$AVGO 🤝 $META

Broadcom edges up after inking three-year deal with Meta to help develop AI chips
Broadcom (AVGO) has entered into a three-year partnership with Meta Platforms (META) to help the company develop its artificial intelligence chips and deploy them into data centers, the companies announced today.
Shares of Broadcom had edged up 3% during early post-market trading on Tuesday.
Under the deal, Broadcom will deliver technology supporting Meta Training and Inference Accelerator (MTIA) chips through 2029. The initial commitment is more than 1GW and is the first phase of a sustained, multi-gigawatt rollout.
"This initial MTIA deployment is just the beginning of a sustained, multi-generation roadmap to serve the trajectory of massive growth over the next few years, highlighting Broadcom's unmatched leadership in AI networking and the power of our foundational XPU custom accelerator platform," said Broadcom CEO Hock Tan.
"Meta is partnering with Broadcom across chip design, packaging, and networking to build out the massive computing foundation we need to deliver personal superintelligence to billions of people," said Meta founder and CEO Mark Zuckerberg.
As part of the partnership agreement, Tan will transition from Meta's Board of Directors and into an advisory role for Meta. He will "provide guidance on Meta's custom silicon roadmap and help shape the future of their infrastructure investments."
Last week, Broadcom signed a long-term deal with Google (GOOG) $GOOGL to develop its custom AI chips, known as tensor processing units. That deal runs through 2031.