Meta Platforms, the parent company of Facebook, is acquiring a privately held microchip startup called Rivos in an effort to boost its internal semiconductor development and gain more control over its artificial intelligence (AI) infrastructure. This move comes as part of Meta’s aggressive capital expenditures on AI, which total $600 billion over the next three years.
Rivos specializes in developing graphics processing units (GPUs), a type of microchip that powers most AI-related work. By acquiring Rivos, Meta can reduce its reliance on external suppliers like Nvidia and gain more control over its AI operations. This is part of a broader trend for tech companies to invest heavily in AI infrastructure.
Meanwhile, Meta has also announced another significant AI-related deal, this time with CoreWeave, which will provide the company with access to $14.2 billion worth of AI cloud infrastructure. The partnership gives Meta an option to expand its computing capacity through 2032.
Analysts are optimistic about Meta’s stock, with a consensus Strong Buy rating among Wall Street analysts. The average price target is set at $876.93, implying 19.46% upside from current levels.
Source: https://www.tipranks.com/news/meta-platforms-meta-buys-startup-rivos-to-boost-ai-microchip-development