Broadcom Extends Meta AI Chip Deal Through 2029; Shares Rise 3% After Hours
Summary
- Broadcom said it signed a 1-gigawatt AI chip supply deal with Meta through 2029.
- On the news, Broadcom shares rose 3.22%% to $392.97 in after-hours Nasdaq trading.
- CNBC said rising AI chip demand is fueling optimistic forecasts for stronger profitability at Broadcom.
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Broadcom said June 14 it had signed an agreement to supply Meta Platforms Inc. with 1 gigawatt of artificial intelligence chips through 2029. The company did not disclose the value of the contract.
The deal extends the companies’ existing agreement tied to Meta Training and Inference Accelerator, or MTIA. Broadcom will provide custom chips for MTIA, which Meta uses in its in-house AI data centers.
Broadcom said the newly designed MTIA chip will be the first AI silicon built on a 2-nanometer process.
Meta Chief Executive Officer Mark Zuckerberg said the company is partnering with Broadcom to build the massive computing infrastructure needed to serve billions of people worldwide.
Broadcom shares rose 3.22% to $392.97 in after-hours Nasdaq trading on the news. The stock was up 9.54% for the year through that session.
Earlier this month, the company also signed separate agreements with Google and Anthropic to supply next-generation custom tensor processing units, or TPUs. For Google, Broadcom agreed to provide networking and other related components for the company’s AI racks through as late as 2031. Anthropic will use 3.5 gigawatts of AI computing capacity through Broadcom starting in 2027.
CNBC said rising demand for AI chips has fueled optimism about stronger profitability at Broadcom.
Lee Mi-ah, Hankyung.com reporter mia@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
