Meta’s new AI chips will begin production in September

Meta is on track to begin production of its latest AI-specific chips in September, according to an internal memo reported by Reuters. The chips, developed under Meta's Training and Inference Accelerator (MTIA) program, are designed to help the company reduce its GPU costs amid a component shortage. Meta is working with Broadcom on chip design and will use TSMC for manufacturing, while also sourcing RAM from Samsung, storage from Sandisk, and fiber-optic equipment from Sumitomo Electric. The company detailed four new chips in March, taking a modular approach to anticipate evolving AI needs. Meta has been spending heavily on AI compute capacity, with capital expenditures expected between $125 billion and $145 billion this year. The company plans to deploy 7 gigawatts of compute this year and double that next. Meta has also signed deals with ARM, AMD, and Amazon for additional computing resources, joining other tech giants like OpenAI, Amazon, and Google in developing custom chips to reduce dependence on Nvidia.