Meta Expands Custom AI Chips for Model Training, Broadcom Forecasts $100B AI Revenue by 2027
Meta Platforms is planning to expand custom chips from recommendation workloads into AI model training, aiming to cut reliance on Nvidia and AMD while boosting efficiency. Broadcom forecasts AI chip sales over $100 billion in 2027, including 3 gigawatts of tensor units for Anthropic and 1 gigawatt for OpenAI, escalating competition with AMD.
1. Meta's Shift to In-House AI Silicon
Meta Platforms is moving its custom chip efforts beyond ranking and recommendation workloads to support AI model training, targeting specialized processing tasks that demand high compute power and aiming to lower costs from third-party GPUs.
2. Broadcom's AI Chip Sales Forecast
Broadcom expects AI chip revenue to exceed $100 billion in 2027, with plans to deliver 3 gigawatts of tensor processing units to Anthropic and more than 1 gigawatt to OpenAI, alongside a $10 billion share repurchase program and $22 billion revenue guidance for Q2.
3. Implications for AMD
Meta’s in-house silicon push and Broadcom’s aggressive AI market strategy intensify competition in the AI chip sector, potentially eroding AMD’s market share and exerting pressure on its future revenue growth.