Meta could be about to buy a lot of Broadcom chips to build its metaverse

data center
(Image credit: Future)

Meta could be set to splash the cash on buying some (very expensive) data centre chips. 

According to JP Morgan analysts (via Reuters), Meta is planning on using custom chips developed by Broadcom to power its metaverse dreams. 

Application-specific integrated circuit (ASIC) chips will drive between $2 billion and $2.5 billion in revenue for Broadcom in 2022, driven by deals from Meta, Google, and other giants. 

Powering the metaverse

"We believe these wins are primarily at 5 nanometre and 3 nanometre and will be used to power Meta's metaverse hardware architecture that it will deploy over the next few years," said JP Morgan's Harlan Sur. 

Sur believes that Meta will spend around $1 billion per year on Broadcom chips over the next three or four years, making it the second such customer after Google. 

ASIC chips are specifically designed for intensive AI applications that require huge processing power all at once. Google has been co-developing ASIC chips with Broadcom since 2016, in a deal worth over $1.3 billion in 2022. 

Everything, everywhere, all at once 

Meta plans to spend around $10 billion per year, as it did in 2021, to build the metaverse, a concept that remains difficult to define, even by Meta's own executives

One of the hardest things is that beyond a fancy PR video, created using CGI, the exact contours of what the metaverse will look like remain up for debate. 

The broad principles are there – socialising, working, playing, and so on – but getting there is going to take several years. 

Buying chips from Broadcom, who have a history of making them, rather than developing its own (as was originally planned), could be recognition from Meta that starting from absolute zero is a very challenging road indeed. 

Broadcom is having a pretty massive few weeks, having recently announced its plan to acquire VMware for $61 billion.

Max Slater-Robins has been writing about technology for nearly a decade at various outlets, covering the rise of the technology giants, trends in enterprise and SaaS companies, and much more besides. Originally from Suffolk, he currently lives in London and likes a good night out and walks in the countryside.

Read more
broadcom
Apple's new BFF, Broadcom, reveals three hyperscalers want to deploy 1,000,000 GPUs or XPUs by 2027; something that will make Nvidia wince
broadcom
Trillion-dollar tech company emerges as key partner to help Google, Meta and other hyperscalers build an Nvidia-free AI future
Facebook CEO Mark Zuckerberg
Forget mega yachts, AI data centers are quickly becoming the next battleground for billionaires as Zuckerberg pledges $65 billion CAPEX spend in 2025
Microchip on a motherboard with Flag of China and USA. Concept for the battle of global microchips production.
Chinese cloud giants bought more of Nvidia's flagship AI chips than anybody else - except Microsoft
Sam Altman and OpenAI
Nvidia, look away! OpenAI is almost ready to deliver first prototype of its AI GPU - General Processing Unit
Nvidia CEO Jensen Huang
Nvidia is preparing for the post-GPU AI era as it is reportedly recruits ASIC engineers to fend off competition from Broadcom and Marvell
Latest in Pro
Racks of servers inside a data center.
Modernizing data centers: an efficient path forward
Dr. Peter Zhou, President of Huawei Data Storage Product Line
Why AI commonization is so important for business intelligent transformation and what Huawei’s data storage has to offer
Wix automation
The world's leading website builder aims to save businesses time with new tool
China
Juniper patches security flaws which could have let hackers take over your router
Hands typing on a keyboard surrounded by security icons
The psychology of scams: how cybercriminals are exploiting the human brain
Representational image depecting cybersecurity protection
GitLab has patched a host of worrying security issues
Latest in News
Image showing detail of the Leica D-Lux 8
Still can't get a Fujifilm X100VI? This premium Leica compact costs less, and it's in stock
Man using iMessage on an iPhone
Apple will finally enable encrypted RCS messages between iOS and Android, and it's about time
Jason Sudeikis' Ted Lasso pointing at someone in Ted Lasso season 2
Believe it, baby: Ted Lasso season 4 is officially in development for Apple TV+ and Jason Sudeikis will reprise his role as the titular soccer coach
Quordle on a smartphone held in a hand
Quordle hints and answers for Saturday, March 15 (game #1146)
NYT Strands homescreen on a mobile phone screen, on a light blue background
NYT Strands hints and answers for Saturday, March 15 (game #377)
NYT Connections homescreen on a phone, on a purple background
NYT Connections hints and answers for Saturday, March 15 (game #643)