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This Week's Exclusive Content Why Meta's AI Chip Announcement Has Broadcom Investors Paying AttentionSubmitted by Leo Miller. Publication Date: 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 custom artificial intelligence (AI) chips. The news follows semiconductor design behemoth Broadcom's (NASDAQ: AVGO) earnings report, during which CEO Hock Tan directly addressed Meta. Meta's announcement effectively confirms its partnership with Broadcom, a development that has clear positive implications for AVGO. There are, however, notable caveats. What does this mean for Broadcom going forward? META and AVGO Confirm MTIA Partnership I've worked for the CIA, personally met four US presidents, and spent 45 years studying the markets—calling Black Monday six weeks before it happened, predicting the fall of the Berlin Wall, and pinpointing the exact bottom in 2009. But what I'm about to share with you is the boldest prediction of my career. After meeting Elon Musk face-to-face at a private gathering of Wall Street elites and months of my own research, I'm now staking my reputation on one date: March 26, 2026. That's when I believe Elon will announce the SpaceX IPO—what Bloomberg is calling the biggest listing of all time. I have found an access code that lets you grab a pre-IPO stake before it happens, but in 72 hours, your window could close. Click here to see how to claim your SpaceX access code Analysts have long suspected Meta was a buyer of Broadcom's custom AI processors, but Broadcom had not explicitly named Meta—until now. On 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 close collaboration with Broadcom. Tan's comment followed reports that Meta halted development of its most advanced custom training chip, codenamed Olympus. Meta also explicitly named Broadcom in its chip announcement, writing, "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, but the fact that both companies are now acknowledging it removes lingering 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," aligns with the cadence Broadcom described in its earnings call. Tan noted many customers are developing roughly two custom chips per year—exactly the pace Meta outlined—lending credibility to Broadcom's statements and suggesting deeper customer ties. Meta is deploying MTIA across a range of workloads, including training and inference for its ranking and recommendation (R&R) models. Training develops more capable models; inference deploys those models to answer queries and perform tasks. R&R training and inference help Meta provide more engaging content and deliver more targeted ads across its apps. With about 3.5 billion users—roughly 40% of the world's population—Meta has substantial compute needs that it is relying on Broadcom to help meet. 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 covers chatbot interactions, image and video generation, and AI-powered business agents in WhatsApp. Although Meta's LLaMA models aren't generally viewed as the state of the art compared with models such as ChatGPT, Claude, or Gemini, they can still be useful and monetized. Meta AI already has over 1 billion users, presenting a sizable opportunity. For Broadcom, MTIA's expansion into GenAI inference is constructive: supporting both Meta's established workloads and emerging GenAI use cases should translate into more chip demand. The Bad: META-AVGO GenAI Training Chip Takes a Back Seat Meta's announcement did not include a GenAI training chip, which bolsters reports that the company has scaled back Olympus development. At the Morgan Stanley Technology Conference, Meta CFO Susan Li said the company "expects" and is "hopeful" it can expand custom silicon use for training AI models "eventually." That's a setback for Broadcom, which likely would have co-developed Olympus with Meta. Meta hasn't abandoned its training-chip ambitions, but the timeline for Broadcom to realize meaningful revenue from a GenAI training chip now appears extended. AVGO and META: Powering the Growth in AI Inference Overall, Meta's relationship with Broadcom is now clearly substantiated and seems to be growing—especially around inference rather than training. Many industry forecasts expect inference to outpace training as the dominant AI workload. McKinsey predicts inference will grow at a compound annual rate of about 35% over the next five years and account for more than half of AI compute by 2030. That trend supports Broadcom's outlook: as Meta leans into inference workloads, its deepening relationship with Broadcom should be increasingly valuable to AVGO. | 
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