Meta Platforms plans to begin manufacturing its in-house artificial intelligence chip, code-named Iris, from September as part of its strategy to expand AI computing capacity to 14 gigawatts by next year, according to an internal memo reviewed by Reuters. The chip is part of Meta’s four-generation Meta Training and Inference Accelerators (MTIA) program and is designed to enhance the AI systems powering Facebook and Instagram. Developed in collaboration with Broadcom and manufactured by Taiwan Semiconductor Manufacturing Co. (TSMC), the custom chip is expected to reduce Meta’s reliance on external suppliers such as Nvidia and AMD while lowering long-term computing costs.
The memo revealed that testing of the Iris chip was completed in just six weeks without any major issues, marking a significant milestone for Meta’s in-house chip development efforts. Although the new processor is intended to complement rather than replace the large volumes of GPUs the company purchases, Meta believes custom silicon will improve efficiency and simplify the deployment of AI infrastructure. The company also plans to introduce new AI chips approximately every six months through 2027, a much faster release cycle than the industry norm.
Meta expects to deploy seven gigawatts of computing infrastructure this year and double that capacity in 2027. To support its ambitious AI expansion, the company has secured long-term supply agreements with Samsung Electronics for memory chips, Sandisk for flash storage, and Sumitomo Electric for fiber-optic equipment. The rapid growth in AI infrastructure across the technology sector has intensified demand for chips and memory, contributing to rising component prices and increasing concerns over “chipflation” among industry analysts.
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