Meta to Deploy 1GW of Broadcom Silicon as AI Capex Surges to $7 T
Meta will deploy over 1GW of custom Broadcom silicon as it raises infrastructure capex forecasts due to higher memory costs and plans May workforce reductions to improve efficiency. McKinsey projects $7 trillion AI data center capex by 2030, positioning Broadcom to benefit as a custom AI chip supplier.
1. Meta Raises Infrastructure Capex Forecast
Meta has increased its infrastructure capital expenditure outlook for 2026, driven by rising memory pricing that has inflated component costs. The company emphasized efficiency gains to offset higher spend.
2. Broadcom Custom Silicon Partnership
Meta will roll out more than 1 gigawatt of bespoke silicon developed with Broadcom, alongside AMD and Nvidia chips, to accelerate AI workloads. To balance this investment, Meta plans a workforce reduction in May to streamline operations.
3. $7 Trillion AI Data Center Build-Out
Market forecasts anticipate $7 trillion in AI data center spending through 2030, with Broadcom well positioned to capture demand for custom AI chips and networking components as hyperscale operators expand.