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Wednesday's Exclusive Content Why Meta's AI Chip Announcement Has Broadcom Investors Paying AttentionSubmitted by Leo Miller. Originally Published: 3/18/2026. 
Key Points - Meta publicly confirmed Broadcom as its custom chip partner for the first time, removing lingering doubts about one of Broadcom's most important AI relationships.
- The MTIA chip roadmap is expanding from ranking and recommendation into generative AI inference—a workload many expect to dominate AI compute by decade's end.
- One notable gap in Meta's announcement: no generative AI training chip, lending weight to reports that its most ambitious custom silicon project has been shelved for now.
- Special Report: Elon's "Hidden" Company
In a recent announcement, the Magnificent Seven tech giant Meta Platforms (NASDAQ: META) unveiled four customized artificial intelligence (AI) chips. The news follows semiconductor design behemoth Broadcom's (NASDAQ: AVGO) earnings report, during which CEO Hock Tan specifically addressed Meta. Meta's announcement effectively reciprocates Broadcom's comments, and it has clear positive implications for AVGO. There are, however, some negative factors worth noting. What does this mean for Broadcom going forward? META and AVGO Confirm MTIA Partnership Market watchers have long suspected that Meta is one of Broadcom's custom AI processor customers, but Broadcom rarely named Meta directly on earnings calls—until now. In Broadcom's Q1 2026 call, Tan said, "Contrary to recent analyst reports, Meta's custom accelerator MTIA road map is alive and well. We're shipping now." MTIA, which stands for Meta Training and Inference Accelerator, is a family of custom chips developed in partnership with Broadcom. Tan's comment followed reports that Meta had halted development of its most advanced training chip, codenamed Olympus. Meta itself explicitly referenced Broadcom in the MTIA press release: "Meta Training and Inference Accelerator (MTIA), our family of homegrown AI chips developed in close partnership with Broadcom, has remained and will continue to be an important part of Meta's AI infrastructure strategy." Markets largely expected this partnership; the fact that both companies are now explicitly acknowledging it removes any remaining doubt. The Good: META-AVGO Partnership Expands Into GenAI The title of Meta's post—"Four MTIA Chips in Two Years: Scaling AI Experiences for Billions"—supports the bullish scenario Broadcom outlined on its call. Hock Tan noted that many customers are developing about two custom chips with Broadcom per year, the same pace Meta described. That alignment bolsters Tan's comments and suggests Broadcom is deepening its customer relationships. Meta is using MTIA across several workloads, including training and inference for its ranking and recommendation (R&R) models. Training develops more capable models; inference deploys those models to answer questions and perform tasks. R&R training and inference enable Meta to deliver more engaging content and more targeted advertising across its apps. Meta reaches roughly 3.5 billion users—more than 40% of the world's population—so its demand for these chips is substantial. The MTIA series also extends beyond R&R. Meta plans to use MTIA 450 and MTIA 500 for GenAI inference, with mass deployments expected in 2027. GenAI inference likely refers to chatbot queries, image and video generation, and AI-powered business agents in apps like WhatsApp. Meta's LLaMa models are generally not considered state-of-the-art compared with models such as ChatGPT, Claude, or Gemini, but they can still be useful and revenue-generating. Meta AI already has over 1 billion users, creating a large audience for those services. For Broadcom, MTIA's expansion from R&R into GenAI inference is positive: supporting both core and emerging workloads should translate into more chip sales. The Bad: META-AVGO GenAI Training Chip Takes a Back Seat Meta's announcement did not include a GenAI training chip, which lends credence to reports that Olympus development has been scaled back. Meta's Chief Financial Officer, Susan Li, recently told investors at the Morgan Stanley Technology Conference that Meta "expects" and is "hopeful" it can expand use of custom silicon to train AI models "eventually." That's a negative for Broadcom if Olympus was intended to be a co-developed project, since any slowdown pushes meaningful revenue further into the future. Still, Meta hasn't abandoned its training ambitions entirely; it appears the timeline has simply been extended. AVGO and META: Powering the Growth in AI Inference Overall, Meta's relationship with Broadcom is now confirmed and appears to be growing—particularly outside GenAI training. Many expect inference to overtake training as the dominant AI workload in the coming years. McKinsey predicts inference will grow at a compound annual growth rate of about 35% over the next five years, accounting for more than half of AI compute by 2030. That outlook supports Broadcom's case: its relationship with Meta—especially around inference—is strengthening and could be an important driver of future growth. | 
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