Meta's Secret AI Chip Power Play: Acquiring Rivos to Challenge Nvidia Dominance

Meta's Strategic Acquisition to Boost AI Infrastructure

Meta Platforms Inc. is making a strategic move to strengthen its artificial intelligence capabilities by acquiring chip startup Rivos Inc., according to sources familiar with the deal. This acquisition represents a significant step in Meta's ongoing effort to enhance its internal semiconductor development and gain greater control over its AI infrastructure.

Bolstering Internal Chip Development

Rivos has been actively developing its own graphics processing unit (GPU), the specialized chip that powers most artificial intelligence workloads. This aligns perfectly with Meta's existing internal chip development initiatives, particularly the Meta Training and Inference Accelerator (MTIA) team that's already building custom chips for AI development.

Reducing Dependence on External Suppliers

Despite having internal chip development teams, Meta continues to spend billions of dollars annually on GPUs from external partners, with Nvidia Corp. being the dominant supplier in this space. The Rivos acquisition signals Meta's commitment to reducing this dependence and bringing more chip development capabilities in-house.

The Bigger Picture for AI Infrastructure

This move reflects the growing trend among major tech companies to develop proprietary AI hardware solutions. By controlling more of their semiconductor infrastructure, companies like Meta can potentially achieve better performance optimization, cost efficiency, and technological independence in the increasingly competitive AI landscape.