Broadcom shares gain on multi-year Meta AI chip deal

Investing.com -- Broadcom Inc. shares rose 2.6% in after-hours trading on Tuesday following the announcement of a multi-year strategic partnership with Meta to support the social media company's artificial intelligence infrastructure.

Under the agreement, Broadcom will deliver technology supporting Meta's Training and Inference Accelerator chips, with plans extending through 2029. The partnership builds on an existing collaboration between the two companies.

The initial commitment exceeds 1GW and represents the first phase of a multi-gigawatt rollout. The infrastructure will support Meta's deployment of AI data centers designed to bring generative AI features to billions of users across WhatsApp, Instagram, and Threads.

The deployment centers on Meta's MTIA silicon, enabled through Broadcom's XPU platform. This platform allows the companies to integrate logic, memory, and high-speed I/O for current deployments while establishing a framework for future MTIA iterations.

"We are pleased to expand our strategic collaboration with Meta as they pioneer the next frontier of artificial intelligence," said Hock Tan, President and CEO of Broadcom. "This initial MTIA deployment is just the beginning of a sustained, multi-generation roadmap."

"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.

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