Broadcom Inc. (NASDAQ:AVGO) shares are trading higher Wednesday after the company announced it extended its partnership with Meta to support multi-gigawatts of Meta’s custom silicon MTIA chips.
Partnership Expansion
Broadcom said it extended its collaboration with Meta to deliver technology supporting Meta Training and Inference Accelerator (MTIA) chips, with plans running through 2029. The agreement represents a multi-year, multi-generation strategic partnership aimed at scaling Meta's AI compute infrastructure.
The initial commitment exceeds 1 gigawatt of compute capacity and marks the first phase of a broader multi-gigawatt rollout. The companies said the partnership establishes a foundation for continued infrastructure expansion to support next-generation AI models and services.
AI Infrastructure Buildout
The collaboration centers on Broadcom's XPU custom accelerator platform, enabling co-development of MTIA chips across multiple generations. The platform integrates logic, memory and high-speed input/output to support Meta's AI workloads at scale.
Broadcom will also provide Ethernet-based networking solutions, including switches, optical connectivity and interconnect technologies, designed to support high-bandwidth, low-latency communication across large AI compute clusters.
The companies said the infrastructure will support scaling across tens of thousands of nodes while minimizing congestion during intensive AI workloads.
Multi-Year Roadmap
Over the next three years, Broadcom and Meta plan to collaborate on next-generation AI accelerator chips to meet increasing compute demand. The partnership also includes ongoing system-level optimization and research and development efforts.
Meta said the expanded deployment of MTIA silicon will improve performance and efficiency as it builds out infrastructure to support AI applications across its platforms.
Additional Development
Broadcom CEO Hock Tan will transition off Meta's board of directors and move into an advisory role focused on the company's custom silicon roadmap and infrastructure strategy.
Broadcom Shares Edge Higher
AVGO Price Action: At the time of publication, Broadcom shares are trading 2.18% higher at $389.09, according to data from Benzinga Pro.
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