# Meta’s Testing its Personal AI Chips to Increase its Processing Capability

Mark Zuckerberg is excessive on AI, so excessive in reality that he’s invested billions into Meta’s personal chip improvement course of, in order that his firm will be capable to construct higher AI knowledge processing programs, with out having to depend on exterior suppliers.

As reported by Reuters:

“Fb proprietor Meta is testing its first in-house chip for coaching synthetic intelligence programs, a key milestone because it strikes to design extra of its personal customized silicon and cut back reliance on exterior suppliers like Nvidia, two sources instructed Reuters. The world’s greatest social media firm has begun a small deployment of the chip and plans to ramp up manufacturing for wide-scale use if the check goes effectively, the sources stated.”

Which is a big improvement contemplating that Meta presently has round 350,000 Nvidia H100 chips powering its AI tasks, which every price round $25k to purchase off the shelf.

That’s not what Meta would have paid, because it’s ordering them in large volumes. Besides, the corporate not too long ago introduced that it’s boosting its AI infrastructure spend by the tune of round $65 billion in 2025, which is able to embrace varied expansions of its knowledge facilities to accommodate new AI chip stacks.

And the corporate might have additionally indicated the scope of how its personal chips will enhance its capability, in a current overview of its AI improvement is evolving.

“By the top of 2024, we’re aiming to proceed to develop our infrastructure build-out that can embrace 350,000 NVIDIA H100s as a part of a portfolio that can characteristic compute energy equal to almost 600,000 H100s.”

So, presumably, whereas Meta could have 350k H100 models, it’s really hoping to duplicate the compute energy of just about double that.

May that extra capability be coming from its personal chips?

The event of its personal AI {hardware} may additionally result in exterior alternatives for the corporate, with H100s in large demand, and restricted provide, amid the broader AI gold rush.

Extra not too long ago, Nvidia has been capable of cut back the wait occasions for H100 supply, which means that the market is cooling off just a little. However even with out that exterior alternative, the truth that Meta could possibly construct out its personal AI capability with internally constructed chips may very well be an enormous benefit for Zuck and Co. shifting ahead.

As a result of processing capability has develop into a key differentiator, and should find yourself being the component that defines an final winner within the AI race.

For comparability, whereas Meta has 350k H100s, OpenAI reportedly has round 200k, whereas xAI’s “Colossus” tremendous heart is presently operating on 200k H100 chips as effectively.

Different tech giants, in the meantime, are growing their very own alternate options, with Google engaged on its “Tensor Processing Unit” (TPU), whereas Microsoft, Amazon and OpenAI all engaged on their very own AI chip tasks.

The following battleground, then, may the tariff wars, with the U.S. authorities implementing large taxes on varied imports to be able to penalize overseas suppliers, and (theoretically) profit native enterprise.

If Meta’s doing extra of its manufacturing within the U.S., that may very well be one other level of benefit, which can give it one other enhance over the competitors.

However then once more, as newer fashions like DeepSeek have proven, it could not find yourself being the processing energy that wins, however the ways in which it’s used that actually defines the market.

That’s additionally speculative, as DeepSeek has benefited extra from different AI tasks than it initially appeared. However nonetheless, there may very well be extra to it, but when compute energy does find yourself being the essential issue, it’s arduous to see Meta shedding out, relying on how effectively its chip challenge fares.