As competition in the AI space intensifies, tech giants are exploring new ways to reduce their dependence on market leader NVIDIA. Meta, one of these companies, is preparing to make a significant acquisition to accelerate its own AI chip development program. According to reports, Meta is in talks to acquire AI chip startup Rivos. This move is seen as part of the company’s strategy to gain greater control over its AI infrastructure and, most importantly, break its costly dependence on NVIDIA.
Meta Seeks to Take the Lead in the AI Race
Meta already has its own chip project, the Meta Training and Inference Accelerator (MTIA). However, the company is still forced to spend billions of dollars on GPUs, largely sourced from NVIDIA, to meet its growing AI ambitions. According to Bloomberg, some executives within Meta are reportedly frustrated by the company’s slow chip development process and are supporting the idea of acquiring an external company to overcome this. This explains why Meta is turning to a high-potential startup like Rivos.
Rivos is particularly known for its expertise in RISC-V architecture, and this technology could enable Meta to produce chips specifically optimized for its own AI workloads. While the financial details of the acquisition are not yet clear, Rivos is known to have secured a $250 million investment in April 2024. Therefore, a potential acquisition is estimated to be in the billions of dollars. Meta previously attempted to acquire Korean chip startup FuriosaAI, but an agreement failed. This situation highlights the company’s commitment to chips.
The acquisition of Rivos, which previously faced a lawsuit with Apple over alleged theft of trade secrets but later reached an agreement, could be a strategic turning point for Meta. CEO Mark Zuckerberg, who once poured all his resources into the Metaverse project, has now frequently stated that AI is the company’s top priority. This potential acquisition provides concrete evidence of Meta’s desire to consolidate the AI supply chain under its own umbrella and shift the balance of power in the industry.
If this major acquisition goes through, Meta’s capabilities in the AI space could significantly expand, further intensifying the pressure on NVIDIA’s market leadership. So, do you think Meta’s strategy of producing its own AI chips will be successful? Share your thoughts on the impact of this move on competition in the tech world in the comments.
