Meta Platforms Inc. is acquiring chip startup Rivos Inc. as part of the company's strategic plan to strengthen its semiconductor development capabilities and gain greater control over its AI infrastructure. The acquisition represents Meta's ongoing effort to reduce dependence on external chip suppliers while advancing its artificial intelligence ambitions. Rivos is currently developing its own GPU, the specialized chip that powers most AI workloads.

This acquisition will complement Meta's existing in-house chip project, the Meta Training and Inference Accelerator, as the company works to build a more comprehensive semiconductor portfolio.

Strategic Move to Reduce Nvidia Dependence

Despite Meta's internal chip development efforts, the company continues to spend billions on external GPUs and remains heavily dependent on market leader Nvidia Corp. for its chip requirements. The Rivos acquisition is designed to help Meta reduce its reliance on Nvidia as the company pursues what it calls “superintelligence” – AI that can perform tasks as well as, or better than, humans.

Meta has been developing custom AI inference chips specifically to lower operational costs and reduce its dependence on external suppliers. However, the company's current chip development progress has not met the expectations of CEO Mark Zuckerberg, who has expressed dissatisfaction with the pace of advancement. According to people familiar with the matter, leadership has been actively searching for outside assistance to accelerate their semiconductor work.

A Meta spokesperson disagreed with characterizations of slow progress, stating that “our custom silicon work is progressing quickly and this will further accelerate our efforts.”

Financial Investment and Valuation Details

While the specific terms of the Meta-Rivos deal have not been disclosed publicly, Rivos was reportedly seeking new funding at a USD 2 billion valuation as recently as August, according to The Information. This valuation provides context for the scale of Meta's investment in expanding its chip development capabilities. The acquisition follows Meta's substantial financial investment in AI development.

CEO Mark Zuckerberg has designated AI as the company's top priority, leading to substantial investments in AI talent and infrastructure as Meta competes with industry rivals, including OpenAI and Alphabet Inc., Google's parent company.

Broader AI Investment Strategy

Meta's acquisition of Rivos is part of a much larger financial commitment to artificial intelligence development. The company plans to spend up to USD 72 billion this year, with a significant portion allocated to AI infrastructure development. This massive investment demonstrates the scale of Meta's commitment to competing in the AI space. In addition to the Rivos acquisition, Meta recently raised USD 29 billion to fund the construction of a massive data center in Louisiana, further illustrating the company's dedication to building the infrastructure necessary for advanced AI development and deployment.

The Rivos acquisition is not Meta's first attempt to strengthen its chip capabilities through external partnerships. Earlier this year, the company attempted to acquire Korean startup FuriosaAI for USD 800 million. However, FuriosaAI rejected the acquisition offer and chose to continue growing independently rather than join Meta's semiconductor development efforts.

Meta's strategy reflects the broader industry trend of major technology companies seeking to develop proprietary chip solutions to support their AI ambitions while reducing costs and dependence on traditional semiconductor suppliers. The acquisition of Rivos represents a significant step in Meta's effort to build comprehensive in-house capabilities for the specialized computing requirements of advanced artificial intelligence systems.

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