Meta Plans Mass Production of Custom Iris AI Chip by September; Stock Surges 6% on Friday

According to Reuters, Meta plans to begin mass-producing its custom Iris AI chip as early as September, causing the company's stock to surge about 6% on Friday (July 11). The chip, designed by Broadcom and manufactured by TSMC, represents the first step in Meta's planned four-generation chip series, with testing completed in approximately six weeks without major issues.

Meta intends to release a new chip every six months through 2027, faster than the industry standard annual cadence. The move signals the company's effort to reduce dependence on Nvidia GPUs while its AI infrastructure spending reaches $125–145 billion for 2026. Meta's first quarter revenue grew 33% year-over-year to $56.3 billion, with operating margin at 41%.