Meta is preparing to build its own artificial-intelligence chips, a move that could reshape how one of the world's biggest technology companies powers its AI ambitions.
According to Reuters, which cited an internal memo, Meta plans to put a custom AI chip into production in September as it looks to roughly double its computing capacity. Several outlets, including Yahoo Finance and Data Center Dynamics, report the chip is called Iris, with production slated for September 2026. Coverage from finance.biggo.com notes Meta is targeting 14 gigawatts of computing power.
The strategic goal is to lean less on Nvidia. TechCrunch reports the effort is part of Meta's bid to spend less on GPUs from providers like Nvidia by making the latest versions of its own AI-specific chips. The Indian Express describes Meta betting on in-house silicon, long-term supply agreements and massive data-center investments to run its next generation of AI services.
Investors reacted quickly. Multiple market reports, including from Analytics Insight and MSN, note Meta shares surged—rising nearly 6% on Friday amid broader AI optimism that lifted the S&P 500 toward a weekly gain. CNBC reports Meta stock got an 18% pop that Jim Cramer had said was possible on cloud news, and adds that investors were also celebrating Meta's Thursday launch of Muse Spark 1.1. Meanwhile, Pluang reports Nvidia stock fell as Meta invested in its own chips.
Why it matters: if Meta can reliably make its own AI chips, it gains more control over cost and supply at a moment when access to Nvidia's hardware is one of the biggest constraints—and biggest expenses—in the race to build advanced AI.