Meta (META) Expands AI Chip Ambitions With $2 Billion Rivos Acquisition

The announcement that Meta (META) plans to acquire chip startup Rivos underscores the company’s push to develop its own semiconductor capabilities as it competes in the intensifying race to control the hardware powering artificial intelligence. Rivos specializes in chips built on the open-source RISC-V architecture, offering an alternative to designs dominated by Arm (ARM), Intel (INTC), and AMD (AMD). For Meta, the deal signals a deeper commitment to reducing reliance on outside suppliers, particularly amid growing competition for advanced processors from Nvidia (NVDA).

Santa Clara-based Rivos brings expertise in full-stack AI systems, which Meta aims to integrate into its Meta Training and Inference Accelerator (MTIA) lineup of custom-built silicon. The company has been one of Rivos’ largest customers and was already exploring closer ties, according to people familiar with the matter. Meta Vice President of Engineering Yee Jiun Song said the acquisition will accelerate progress in Meta’s AI chip initiatives, which are critical to scaling infrastructure and cutting costs from heavy dependence on Nvidia GPUs.

• Meta will acquire chip startup Rivos to expand its in-house semiconductor program.
• Rivos focuses on RISC-V architecture, an open-source alternative to Arm and Intel designs.
• Deal highlights Meta’s strategy to reduce reliance on Nvidia and diversify chip supply.

• Rivos had been valued near $2 billion and counted Meta among its largest customers.
• Meta’s custom silicon work focuses on MTIA chips for AI training and inference.
• Meta’s rising chip efforts come as demand for AI infrastructure accelerates globally.

• Acquisition may intensify competition with Nvidia, Intel, and AMD in AI processors.
• Meta’s success in chipmaking could help ease AI infrastructure bottlenecks.
• Deal highlights trend of Big Tech seeking control over critical hardware supply chains.

• Meta’s acquisition of Rivos accelerates its shift toward proprietary AI chips, reducing dependency on outside suppliers like Nvidia and positioning Meta to achieve better control over performance, cost, and scalability of its hardware stack as global AI demand surges.
• Rivos’ expertise in RISC-V architecture gives Meta a competitive edge: open-source flexibility enables rapid innovation and may lower total development costs versus legacy chip models from Arm and Intel, allowing Meta to tailor solutions for its own AI workloads and use cases.
• The deal aligns Meta with other Big Tech players (Google, Amazon, Microsoft) pursuing vertical integration in AI infrastructure, helping to secure supply chains in a constrained chip market and enhancing resilience amid ongoing processor shortages and supply volatility.
• Meta’s custom silicon efforts—focused on MTIA chips—could ease bottlenecks in AI training and inference, unlock new capabilities for its platforms, and support large-scale AI deployment with greater operational efficiency.
• Actionable for engineering and procurement teams: Early partnership or piloting with Meta’s new chip architecture could offer preferred access to next-generation infrastructure; investors should monitor Meta’s roadmap for milestones in in-house chip production and deployment.

• In-house chip development is risky and resource-intensive—Meta’s integration of Rivos may face technology, execution, or scale challenges, delaying the timeline for competitive products and exposing the company to unexpected costs versus proven platforms from Nvidia, Intel, and AMD.
• RISC-V architecture, while flexible and open source, is less mature and may struggle to match the performance of established chip designs in demanding AI applications, potentially limiting Meta’s ability to keep pace with the fastest industry innovation cycles.
• Meta’s focus on proprietary hardware may complicate its relationships with existing suppliers and partners—potentially fragmenting its supply base, straining procurement, or causing friction over access to critical next-gen technologies.
• The new acquisition intensifies competition with top chipmakers at a time of heightened geopolitical scrutiny and supply chain risk, raising the likelihood of regulatory hurdles or challenges finding adequate manufacturing partners for specialized AI chips.
• Action item for finance and ops leaders: Closely monitor execution risks, supplier rationalization, and engineering talent retention; stress-test cost and deployment models for Meta’s custom chips relative to scaling proven off-the-shelf solutions as AI workloads expand.

Meta has been investing heavily in Nvidia hardware while simultaneously developing its own chips to balance performance with cost control. Reuters reported earlier this year that the company began testing in-house AI chips, with Rivos expected to add both engineering talent and architectural expertise. The move aligns Meta with peers like Google, Amazon, and Microsoft, all of which are expanding proprietary silicon to meet exploding AI workloads.

The acquisition also reflects broader shifts in the semiconductor landscape. RISC-V, unlike proprietary instruction sets from Intel and Arm, is open-source, giving developers flexibility in design and potentially lowering barriers for innovation. By integrating Rivos’ technology, Meta aims to strengthen its vertical integration in AI infrastructure at a time when securing supply and optimizing efficiency have become strategic imperatives for major tech companies.