Meta Platforms Inc. has decided to acquire startup Rivos Inc., which, according to Bloomberg, is part of an effort to improve its in-house semiconductor development. The move is intended to help Meta gain greater control over its artificial intelligence infrastructure. The report comes from people familiar with the deal.
Why Does Meta Need Rivos?
Rivos Inc. is developing its own graphics processing unit, known as a GPU, which powers most artificial intelligence workloads. Meta Platforms Inc. already has an internal team building chips for artificial intelligence development, called the Meta Training and Inference Accelerator. Nevertheless, Meta spends billions of dollars annually on GPUs from external partners, including market leader Nvidia. This acquisition is intended to help reduce its dependence on such suppliers and accelerate its own development.
Details About Rivos
Rivos Inc. focuses on designing AI chips using the open RISC-V architecture, which allows for greater customization for specific artificial intelligence tasks. In August, the startup was seeking funding at a valuation of $2 billion, approximately 46 billion Czech korunas. The financial terms of the acquisition itself were not disclosed, but it is a strategic move following Meta's unsuccessful attempt to acquire another startup, FuriosaAI.
How Does This Fit Into Meta's Plans?
Meta Platforms Inc. plans capital expenditures of between $66 billion and $72 billion this year. A large portion of this money is going toward artificial intelligence infrastructure. The acquisition of Rivos Inc. brings expertise in fully integrated AI chip design, which is intended to help Meta reduce long-term costs and strengthen its control over hardware. This move is part of a trend in which large companies such as Amazon, Google, and Microsoft are developing their own chips to avoid costly dependence on external suppliers.
Source: bloomberg.com
