Meta commits to one gigawatt of custom chips with Broadcom as Hock Tan agrees to leave board

Meta and Broadcom have announced a significant partnership extension, focusing on the design of Meta’s custom AI accelerators through 2029. This collaboration aims to enhance Meta’s technological capabilities in the AI space.

Additionally, Broadcom’s CEO, Hock Tan, has decided not to seek reelection to Meta’s board, signaling a shift in leadership dynamics within the company.

As part of the agreement, Meta plans to deploy a gigawatt of its Training and Inference Accelerators, showcasing its commitment to innovation and advancement in AI technology.

Following the announcement, Broadcom’s shares saw a 3% increase in extended trading, while Meta’s stock remained stable.

Meta recently introduced four new versions of its in-house MTIA chips, joining other tech giants in the development of custom silicon solutions tailored for AI data centers.

The partnership between Meta and Broadcom reflects the growing trend of hyperscalers exploring alternative solutions to traditional GPUs for AI processing, emphasizing the importance of specialized ASICs in optimizing performance and efficiency.

Google and Amazon have paved the way in custom chip development, with Meta now joining the ranks by leveraging its MTIA chips for internal operations.

Notably, Broadcom’s collaboration with Google for producing TPUs highlights the company’s strategic positioning in the AI hardware market.

Overall, Broadcom’s shares have shown a 10% increase in 2026, outperforming the S&P 500 index.

Meta also announced the departure of Tracey Travis, former Estée Lauder finance chief, from its board, marking a transition in board composition.