
Meta Platforms plans to begin production of its latest in-house artificial intelligence (AI) chip, code-named “Iris,” in September as part of an ambitious strategy to significantly expand its computing capacity and strengthen its AI capabilities, according to an internal company memo reviewed by Reuters.
The custom-designed chip is part of Meta’s four-generation Meta Training and Inference Accelerator (MTIA) programme, aimed at improving the AI systems that power its Facebook, Instagram and other digital platforms.
The company hopes the initiative will reduce its dependence on external chip suppliers such as Nvidia and AMD while lowering long-term computing costs.
According to the memo, 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, which have faced challenges since their launch more than five years ago.
Meta is developing the chip in collaboration with Broadcom, while manufacturing will be handled by Taiwan Semiconductor Manufacturing Company (TSMC).
The processor is designed to complement, rather than replace, the large volumes of graphics processing units (GPUs) Meta continues to purchase from Nvidia and AMD for AI workloads.
The company unveiled Iris and three other AI processors in March and plans to introduce new AI chips roughly every six months through 2027, a much faster pace than the typical annual release cycle in the semiconductor industry.
The memo also revealed Meta’s plans to dramatically expand its computing infrastructure. The company expects to deploy seven gigawatts of computing capacity in 2026 and double that figure to 14 gigawatts in 2027 as demand for AI services continues to surge.
To support this expansion, Meta has secured long-term supply agreements with several key technology suppliers, including Samsung Electronics for memory chips, Sandisk for flash storage and Sumitomo Electric for fibre-optic equipment.
Meta is expected to spend up to $145 billion on AI infrastructure this year, underscoring the intense competition among major technology companies to build the computing power needed for next-generation AI systems.
The rapid growth in demand for AI chips, memory and related components has also contributed to rising semiconductor prices, a trend analysts have described as “chipflation.”
The planned production of the Iris chip highlights Meta’s push to gain greater control over its AI infrastructure while supporting its long-term goal of expanding computing capacity to meet the growing demands of artificial intelligence.-ERMD
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