Mark Zuckerberg Is Turning Meta Into a Bigger Chipmaker. Its Newest In-House AI Chip Enters Production in September.
A reported September production date hints at how the company plans to get more out of its massive AI budget.
Overview
Shares of Meta Platforms (NASDAQ: META) rose about 6% on Friday after Reuters reported on Thursday that the social media giant plans to start manufacturing its own data-center AI (artificial intelligence) chip in September. The chip, code-named Iris, was designed with help from Broadcom (NASDAQ: AVGO) and will be built by Taiwan Semiconductor Manufacturing (NYSE: TSM), according to an internal memo the news organization reviewed.
The market's enthusiasm is easy to understand. Meta expects to spend as much as $145 billion on AI infrastructure this year, and that spending has been my biggest concern with the stock. Custom silicon is aimed squarely at getting more computing power out of every one of those dollars.
Details
So, what does Meta's expanding chip program mean for the stock?
Source
Originally published at www.fool.com.
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