So here's how you know an AI partnership is getting serious: when the CEO of one company steps off the other's board to focus on the tech. That's what happened Tuesday as Meta Platforms Inc. (META) and Broadcom Inc. (AVGO) announced they're extending their multi-year chip partnership, and Broadcom's Hock Tan is leaving Meta's board to advise on the silicon roadmap.
The deal itself is a big one. They're teaming up to co-develop what they're calling the industry's first 2nm AI compute accelerator. Think of it as the engine for Meta's next wave of AI data centers, which are supposed to handle massive training and inference workloads for all those real-time generative AI features you keep hearing about.
Meta CEO Mark Zuckerberg put it this way: "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."
This isn't just about one chip. It's the foundation for what Meta calls a "multi-gigawatt infrastructure rollout" through 2029. That's a lot of power. The backbone will be Broadcom's XPU custom accelerator and networking solutions, all supporting Meta's own MTIA (Meta Training and Inference Accelerator) chips.
And the market liked what it heard. Broadcom shares were up 3.02% to $392.26 in after-hours trading Tuesday. Meta shares were mostly flat after the news, but they'd already gained 4.41% during the regular session.
So the partnership gets deeper, the chips get smaller (2nm is seriously tiny), and one CEO changes his seat at the table from board member to advisor. In the world of AI infrastructure, that's what commitment looks like.
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