- Meta Platforms is reportedly negotiating a $6.5 billion deal with Samsung Foundry to manufacture its next-generation MTIA AI chips.
- The agreement would shift chip production away from longtime partner TSMC toward Samsung’s advanced 2-nanometer manufacturing process.
- Meta is targeting five gigawatts of data center capacity by 2030 and plans to release a new AI chip every six months.
- Samsung’s foundry backlog could approach $32.5 billion over the medium to long term if the Meta deal and others materialize.
Meta Platforms is reportedly in advanced discussions with Samsung Electronics‘ foundry division over a deal worth more than $6.5 billion to design and manufacture its third-generation Meta Training and Inference Accelerator chips.
The talks, first reported by South Korean outlet Sedaily, would mark a departure from Taiwan Semiconductor Manufacturing Company (TSMC), which built Meta’s first two generations of in-house AI silicon, and represent one of Samsung’s largest AI chip orders to date.
Surprisingly, this reported hardware push comes just days after Zuckerberg aims to expand Meta into prediction markets to capture new user segments.
Why Meta Is Turning to Samsung
Meta’s push into custom silicon reflects a broader industry shift away from relying solely on Nvidia’s GPUs.
According to Yahoo Finance, the new MTIA chips would be produced using Samsung’s 2-nanometer process technology, a change from the TSMC-built accelerators that powered earlier generations.
The move comes as Meta expands its proprietary chip program to support a target of five gigawatts of data center capacity by 2030, a buildout that requires manufacturing partners capable of delivering leading-edge nodes at volume.
What the Deal Involves and Who’s Behind It
Meta is reportedly working with Samsung’s System LSI division to develop AI chips as it speeds up its release cycle, targeting a new chip every six months. According to Yahoo, both third- and fifth-generation MTIA chips are planned for next year.
The AOL report, citing analysis from 24/7 Wall St., reports that the third-generation chips will use Samsung’s SF2 process with Gate All Around transistor technology, making it one of Samsung Foundry’s largest AI orders after its reported $16.5 billion agreement with Tesla.
Zuckerberg has said Meta plans to invest hundreds of billions of dollars in AI infrastructure, the reported reason for its workforce reduction, with custom chips designed for its Llama models and recommendation systems playing a key role in that strategy.
Market Impact of Meta Chip Deal with Samsung
News of the talks arrives as investors increasingly scrutinize how hyperscalers are managing the cost side of their AI buildouts.
Immediate Market Reaction
The report is still framed as unconfirmed, sourced to Korean financial media rather than an official announcement from Meta or Samsung, so the trading reaction has been measured.
Still, Seeking Alpha noted that investors viewed Samsung Electronics as the more likely near-term beneficiary. Large supply agreements often draw greater attention to suppliers, as seen after Apple’s recent Intel partnership.
Sector-Wide Implications
A confirmed Meta-Samsung agreement would add to a growing trend of hyperscalers moving beyond single-vendor chip strategies.
Alphabet, Amazon, and Microsoft have already invested in custom AI silicon, and AOL reports that Anthropic, the most valuable AI firm, is also evaluating Samsung’s 2-nanometer process for its own chips as it looks to reduce reliance on Nvidia GPUs and Google’s TPU platform.
For Samsung, the deal would also help chip away at TSMC’s near-monopoly on advanced AI chip manufacturing.
Short-Term vs. Long-Term Impact
In the near term, the deal remains unconfirmed and subject to change before any formal contract is signed.
Longer term, reports note that industry estimates put Samsung’s total foundry order backlog at roughly 50 trillion won, or about $32.5 billion, over the medium to long term if deals like this one and its Tesla agreement continue to accumulate.
Clear Breakdown of the Meta’s Deal
Setting aside the headline figure, a few specific mechanics of the reported deal stand out.
What Changed
Meta’s first two MTIA chip generations were manufactured exclusively by TSMC.
If confirmed, the third generation would mark Meta’s first major shift to Samsung’s foundry, diversifying its supply chain as TSMC faces heavy demand from AMD, Broadcom, and Nvidia.
Importantly, this move also mirrors Nvidia’s recent expansion of partnerships with SK hynix to strengthen its broader AI supply chain.
What Stakeholders Should Do
Investors tracking Meta and Samsung should watch for official confirmation from either company, since the current reporting relies on Korean financial media rather than direct statements.
Stakeholders should also weigh the reported chip expansion against Meta’s recent acknowledgment that its AI agents have yet to meet expectations, making future product performance just as important as continued infrastructure investment.
What to Avoid
Avoid treating the $6.5 billion figure as final. Reported deal values tied to unconfirmed negotiations frequently shift by the time contracts are signed, and neither Meta nor Samsung has publicly confirmed the terms.
Common Misconceptions About the News
A few assumptions have circulated alongside this story that are worth addressing directly.
“This Deal Means Meta Is Abandoning Nvidia”
MTIA chips target inference and recommendation workloads rather than replacing Nvidia GPUs for frontier AI training. Like Amazon and Google, Meta is pursuing a hybrid strategy, pairing custom chips with continued Nvidia GPUs for large-scale model training.
“Samsung Replaces TSMC Completely”
The reported deal covers Meta’s third-generation MTIA chips. It does not indicate Meta is ending its relationship with TSMC or shifting every AI chip program to Samsung.
Why Not to Rely on Social Media for This Story
Social media has treated the reported $6.5 billion deal and Samsung’s 2-nanometer process as confirmed, even though both remain under negotiation.
The report traces back to a single Korean outlet, and neither Meta, Samsung, nor Anthropic has publicly confirmed the claim
What’s Your Take?
Do you think Meta’s shift toward Samsung signals a lasting change in the foundry landscape, or is this simply a hedge against TSMC’s capacity constraints?
If Anthropic follows Meta toward Samsung’s 2-nanometer process, would that meaningfully dent Nvidia’s grip on the AI hardware market?
How This News Article Was Created
This business news analysis is exclusively based on:
- Financial reporting and market data from Yahoo Finance, Seeking Alpha, and AOL.
- Industry analysis based on infrastructure targets, equity trends, and South Korean financial reporting.
- No confidential documents, internal records, or nonpublic information were accessed or used.
About Author
Ahmad in a nutshell is product of passion, enthusiasm and adventure. He loves to write around anything that involves behaviors, art, business and what makes people happier. He also shares his business and lifestyle content on entrepreneur.com and lifehack.org.
