Meta to Start Producing its AI Chips in September

According to an internal memo shared within Meta Platforms, the company plans to start making its own AI chips in September this year. This production is intended to ramp up the computing power available to the company to 14GW (gigawatts) by the end of 2027.

The chip, dubbed “Iris”, is primarily intended to be used in the data centers owned by the tech company. The training and inference accelerator chips were designed in-house in order to customize the technology powering the firm’s social media platforms Instagram and Facebook.

The firm revealed in its internal memo that tests on the chips had been conducted in a period spanning six weeks and no major issues had been uncovered during those tests. Under normal circumstances, testing for such devices takes a lot longer, and Meta’s collapsing of that time indicates that the company is progressing well in its plans to produce AI chips internally.

The tech company plans to produce four generations of these chips and each subsequent generation is intended to be released every six months. Again, this bucks the industry trend since new chips normally come out after at least a year from the previous release.

Meta’s memo shows it worked with Broadcom during the design of this chip and it has completed arrangements to have TSMC manufacture the chips. This approach was a logical step because it would have been a lot harder to design the chips one hundred percent internally and then establish the manufacturing capacity to produce the chips internally.

Outsourcing these crucial processes ensures that the tech company only focuses on laying out the desired specifications of the chips and then lets a company with the necessary experience and technical capacity undertake the design. Similarly, contract manufacturers like Taiwan Semiconductor Manufacturing Co. have immense expertise and capacity to fabricate the chips to a high standard in a relatively short time.

Currently, Meta uses GPUs and other components sourced from Advanced Micro Devices and Nvidia. By switching to using some of its own chips, the firm will not only cut its expenditure on data center establishment but also increase its competitive advantage since it will incorporate chips that have been customized for its unique needs.

Meta now joins the likes of Microsoft Corp. (NASDAQ: MSFT) that have opted to start making their own silicon in-house so that they don’t have to entirely depend on externally-sourced technology to support their AI build-out.

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