Meta Platforms is working with Taiwan’s Taiwan Semiconductor Manufacturing Company (TSMC) to manufacture a new AI Chip. The company has started testing its first in-house chip for training its AI systems, according to a Reuters report. In a move to end its reliance on chip-powerhouse Nvidia (NVDA), Meta hopes to improve its AI infrastructure while lowering costs.
The Reuters report suggests that Meta’s AI-related spending is a major part of its projected $114 billion to $119 billion expenses for 2025, including up to $65 billion in capital expenditures. The company has previously struggled with its chip development. It scrapped an earlier inference chip after poor test results and went back to buying billions of dollars’ worth of NVIDIA GPUs in 2022. Now, TSMC could give the Facebook creator a much-needed boost.
Meta AI Technology to Boost Company’s Stock in 2025
The last several years have seen artificial intelligence dominate Wall Street demand. Yet, the ongoing arms race for development in the emerging technology has yet to see a clear winner established. That’s something META is hoping to change, as the company is looking to develop an industry-standard AI bot that could propel its stock higher. With the addition of this new AI chip with TSMC, perhaps that bot could arrive sooner than expected.
META has been one of the biggest winners of the year so far. It had enjoyed a 20-week gaining streak that had the stock skyrocketing in value, especially compared to Mag-7 rivals. With its focus squarely on AI development, it is looking to be the leading developer for the sector that is expected to play a premiere role in all tech facets in the coming years. Furthermore, Meta executives say that they aim to use in-house chips by 2026 for both training and inference tasks.
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“In the near future, we believe the majority of businesses will have an AI interacting with customers on their behalf,” the Meta company says. “Large companies know this and are investing in complex software and information technology teams to roll out their AI solutions. Our goal at META is to make AI accessible to all businesses regardless of size—just like we did for ads.”
Meta hopes for its AI Chip accessibility to arrive with increased adoption. If companies of all sizes are using its AI solutions, then all companies would be embracing their product. That could be a big part in propelling the stock towards its high-end price projection of $900, according to CNN. That would indicate a 38% increase over its current position.
