Meta Platforms Inc. (NASDAQ:META) is advancing its artificial intelligence strategy through custom chip development, new AI tools, and content partnerships to strengthen its technology ecosystem and unlock future growth.
Meta Pushes Ahead With In-House AI Chips
Meta continues to pursue in-house chip development even after securing major supply agreements with leading semiconductor companies.
Speaking at a Morgan Stanley technology conference, Meta CFO Susan Li said the company is developing custom processors tailored to its own workloads, particularly those tied to ranking and recommendation systems, where Meta has already deployed custom silicon at scale.
Li said Meta plans to expand the use of its custom chips over time, including eventually building processors capable of training future AI models, Bloomberg reported on Thursday.
Although Meta is not a cloud provider, it operates some of the largest data centers used to train and run AI models.
In recent weeks, the company signed large agreements with Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices Inc. (NASDAQ:NVDA) for chips and hardware that power its AI infrastructure.
Li said Meta evaluates different chip types for different tasks and considers custom silicon a key part of its long-term strategy for handling AI workloads.
Meta Expands AI Tools, Infrastructure, And Content Deals
Meta is expanding its AI strategy with new tools, infrastructure, and content partnerships to strengthen its AI ecosystem and unlock new revenue opportunities.
The company is testing a shopping research feature in its Meta AI chatbot, allowing users to request product recommendations with images, pricing, and links to merchant sites.
Meta is also building a new applied AI engineering organization, led by Reality Labs executive Maher Saba, to improve model training and development alongside its Superintelligence Lab.
At the same time, Meta is securing more AI training data through licensing agreements with publishers, including a deal with News Corp. (NASDAQ:NWSA) (NASDAQ:NWS) that could pay up to $50 million annually for access to news content and archives.
Analysts Weigh AI Spending And Long-Term Growth
Despite these initiatives, Meta shares have faced some pressure as investors question the scale of its AI investments.
Meta stock gained just 1.72% in the last 12 months, trailing the NASDAQ Composite Index’s 23% returns.
Analysts say Meta faces near-term investor skepticism over AI spending but could still offer long-term upside as its AI strategy develops.
Suncoast Equity Managing Director Eric Lynch said concerns about rising capital expenditures tied to CEO Mark Zuckerberg’s AI push have pressured the stock, contributing to its 4.6% decline in 2026 despite 26% revenue growth last quarter.
Lynch noted the drop at a price-to-earnings ratio around 20 appears largely “self-inflicted” and said the shares could rebound if Meta shows greater discipline in AI-related spending.
Meanwhile, Jefferies analyst Brent Thill views the recent pullback as a potential buying opportunity.
Thill expects Meta’s new text and image AI models, set to launch in the first half of 2026, to help reshape investor perceptions of the company’s AI capabilities.
He also highlighted cost cuts in the metaverse division, improved AI-driven ad performance, and WhatsApp’s monetization potential, projecting the platform’s revenue could grow fourfold by fiscal 2029.
META Price Action: Meta Platforms shares were down 0.80% at $662.36 during premarket trading on Thursday, according to Benzinga Pro data.
Photo by PJ McDonnell via Shutterstock
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