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Meta Could Soon Splash Some Major Cash On The Purchase Of Very Expensive Data Center Chips For Its Metaverse

Meta will soon turn out to be Broadcom’s latest and biggest buyer when it comes down to AI chips, which the firm plans on using to create its Metaverse.

For those who may not be aware, these chips do not come cheap and that’s why we’re about to see the tech giant splash out some of its biggest bucks over the chips for its data center.

A recent report by analysts hailing from JP Morgan has gone as far as mentioning how the company is keener now than ever to buy the customized chips that were initially created by Broadcom. And it’s so it can go about powering its set dreams related to the Metaverse.

ASIC chips will help the company bring in revenue worth a staggering $2 billion and it could even range from $2.5 billion for Broadcom, starting this year. And that’s all thanks to some major deals being driven by leading tech companies Google, Meta, and more.

One analyst from JP Morgan shed light on how the company firmly believes that the gains could be major and hence would be used to power the firm’s metaverse hardware framework. And that means we could soon see the Metaverse come into effect as early as the next couple of years.

With an average spending of nearly $1 billion per month by Meta on these exclusively designed and super expensive chips, the tech company will reportedly be the second-highest buyer with the top spot going to none other than Google.

These chips are particularly designed in a customized manner for a wide range of applications that give rise to mega processing powers at one time. Moreover, we’re now seeing Google co-develop the customized chips for a number of years now, making them a loyal customer since the year 2016. And now, the deal is said to be worth more than a staggering $1.3 billion.

For now, we know that Meta is only keen on spending around $10 billion each year, as seen in the year 2021. And the sole purpose is to kickstart the development of the Metaverse and allow it to expand in the shortest span of time.

And while the concept is a difficult one to understand and explain, even by the company’s own heads, the passion and dedication with which they’re working must be commended.

While the different principles have been outlined, we’re yet to see them come into play for a few years, at least. And the purchase of these chips is a signal that they’re starting from ground zero.


Read next: Meta Is Tired Of Answering EU’s Questions As Company Compares Its Anti-Trust Regulators To ‘Fish Trawlers’

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