Meta Platforms Inc. is acquiring semiconductor startup Rivos Inc. in a strategic move to expand its in-house chip capabilities and gain greater control over its artificial intelligence infrastructure. The deal, reported by Bloomberg News, underscores Meta’s aggressive push to reduce dependence on external chip providers for its large-scale AI operations.

Rivos’ GPU Development Adds to Meta’s AI Ambitions

Rivos has been working on developing its own graphics processing unit (GPU), the crucial chip technology that powers most AI-driven workloads. By bringing Rivos under its umbrella, Meta aims to accelerate innovation in AI hardware and support its long-term infrastructure needs.

Also Read | Revolut to Launch in India Soon, Promises One-Stop Money App With UPI and Forex

Meta already runs an internal chip development programme called the Meta Training and Inference Accelerator, which designs processors tailored for AI training and deployment. Despite these efforts, the company continues to spend billions of dollars annually on GPUs sourced from market leader Nvidia Corp., highlighting the scale of its reliance on outside suppliers.

Acquisition Terms Not Disclosed

The financial details of the Rivos acquisition have not been made public. However, industry reports indicate that Rivos had been in fundraising talks at a valuation of around $2 billion as recently as August, according to The Information.

Also Read | TrackOlap’s New Automation Tool Redefines Sales Efficiency for Fintech Firms

Meta’s Strategy: Reduce Reliance on Nvidia

The acquisition is part of Meta’s broader strategy to lower its dependency on Nvidia and other chipmakers, as demand for AI hardware skyrockets. With AI central to its future growth—from large language models to metaverse platforms—Meta is doubling down on custom chip design to secure a stronger competitive edge.