Meta Plans Custom AI Training Chips, Launches Shopping Feature and $50M Data Deals
Meta is developing custom AI processors for ranking and recommendation systems and plans future chips for training large AI models alongside supply agreements with Nvidia and AMD. It has formed an applied AI engineering unit, is testing an AI-powered shopping feature, and signed content licensing deals worth up to $50 million annually.
1. Custom AI Processor Strategy
Meta CFO Susan Li outlined plans to develop custom processors tailored to ranking and recommendation workloads, aiming to reduce dependence on external suppliers. The company intends to scale its silicon roadmap to support future AI model training, while maintaining supply agreements with Nvidia and AMD.
2. AI Tools and Infrastructure
Meta has established an applied AI engineering organization led by Reality Labs executive Maher Saba to streamline model training and deployment. The firm is also testing a shopping research feature within its AI chatbot that delivers product images, pricing, and merchant links to enhance user engagement.
3. Content Licensing and Financial Impact
Meta secured licensing agreements for AI training data, including a deal valued at up to $50 million annually for news content. Despite these AI investments, Meta’s share price has risen only 1.72% over the past year, trailing the Nasdaq Composite’s 23% gain.