Meta Acquires Rivos To Accelerate AI Chip Development: Report

Meta Platforms (META) is reportedly acquiring a startup called Rivos, which is developing its own graphics processing units. 

According to a report by Bloomberg, citing people familiar with the matter, Meta’s internal chip development has not progressed as quickly as CEO Mark Zuckerberg would have liked. It added that the company has reportedly been exploring acquisitions, such as Rivos, to bolster its internal team and accelerate chip development efforts.

META’s stock dipped nearly 2% in afternoon trade with retail sentiment on Stocktwits trending in ‘bullish’ territory over the past day.

According to Bloomberg, the terms of the deal are not yet known. The Information reported in August that the startup was seeking new funding at a $2 billion valuation. Like others in the industry, Meta has been pushing to develop its own custom AI inference chips to reduce its dependency on Nvidia (NVDA) as a part of its broader push towards “superintelligence.”

NVDA’s stock hit an intra-day record high of $187.35 on Tuesday. At the time of writing, the stock had pared some of its gains, trading at around $185.55, still up more than 2% for the day. 

Zuckerberg has intensified Meta’s AI initiatives this year, investing in talent and infrastructure to compete with Sam Altman’s OpenAI and Alphabet’s Google. Altman announced on Tuesday that OpenAI is rolling out a new app called Sora alongside the Sora 2 video generation model. Retail sentiment on Stocktwits around OpenAI, which is not a publicly listed stock, trended in ‘bullish’ territory. 

Meta reportedly offered to buy out FuriosaAI, a South Korea-based semiconductor developer, for $800 million in March, but the company turned down the offer to grow independently.

Read also: Trump Announces Pfizer Drug-Pricing Deal, Company To Invest $70 Billion in US Manufacturing

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