Meta Develops Custom AI Chip to Reduce Dependence on Nvidia

Meta is reportedly exploring the development of its own chip for training AI systems as part of a strategy to lessen its dependence on hardware manufacturers like Nvidia. According to Reuters, this new chip, engineered to handle AI-specific tasks, was developed in collaboration with TSMC, a Taiwan-based company. The social media giant is currently running a “small deployment” of the chip and intends to increase production if the initial tests yield positive results. While Meta has previously rolled out custom AI chips, they were only used for running models rather than for their training purposes.
As noted by Reuters, many of the company’s chip design initiatives have been shelved or significantly scaled back after not meeting internal benchmarks. Meta anticipates spending $65 billion on capital expenditures this year, with a substantial portion allocated for Nvidia GPUs. If the company can cut even a small part of that expense by transitioning to in-house chips, it would represent a significant achievement for the tech giant.
Brief news summary
Meta is currently testing a custom chip designed for training AI systems, aiming to decrease its dependence on external hardware producers like Nvidia. This initiative involves collaboration with Taiwan's TSMC and entails a small initial deployment, with plans for increased production contingent on the test's success. Historically, while Meta has utilized custom AI chips for running models, this marks the first effort focused on training. Some of Meta's previous chip development projects have been scaled back or canceled due to unmet expectations. The company is investing $65 billion in capital expenditure this year, significantly directed towards Nvidia GPUs. Successfully transitioning to in-house chips could lead to substantial cost savings for Meta, enhancing its operational efficiency.
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