Meta Platforms is set to commence manufacturing of its proprietary artificial intelligence chip, codenamed "Iris," in September, according to an internal memo cited by the Straits Times.
The development marks a pivotal step in the social media giant's strategy to vertically integrate its AI infrastructure, aiming to reduce dependence on third-party suppliers such as Nvidia and lower its substantial computing costs.
The news contributed to a sharp rally in Meta shares, which surged nearly 7.5% in Friday's trading session to close at $677.9 on the Nasdaq.
The advance extended the stock's winning streak to a second consecutive day, reflecting investor enthusiasm for the company's ability to control its own hardware destiny and potentially improve long-term margins on AI workloads.
This shift toward in-house silicon production intensifies competition within the semiconductor ecosystem.
While Nvidia remains the dominant supplier of AI accelerators, Meta's move follows a broader industry trend where major tech firms seek greater autonomy over their compute stacks.