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    Home > Finance > Meta plans to buy chip startup Rivos to boost semiconductor efforts
    Finance

    Meta plans to buy chip startup Rivos to boost semiconductor efforts

    Published by Global Banking & Finance Review®

    Posted on September 30, 2025

    2 min read

    Last updated: January 21, 2026

    Meta plans to buy chip startup Rivos to boost semiconductor efforts - Finance news and analysis from Global Banking & Finance Review
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    Tags:innovationtechnologyinvestment

    Quick Summary

    Meta plans to acquire Rivos to enhance its semiconductor capabilities, focusing on AI and chip development using RISC-V architecture.

    Table of Contents

    • Meta's Acquisition of Rivos: Strategic Insights
    • Overview of Rivos and Its Expertise
    • Impact on Meta's AI and Chip Development
    • Financial Aspects of the Acquisition

    Meta Set to Acquire Rivos to Enhance Semiconductor Capabilities

    Meta's Acquisition of Rivos: Strategic Insights

    By Jeffrey Dastin and Krystal Hu

    Overview of Rivos and Its Expertise

    (Reuters) -Meta intends to acquire the chip startup Rivos to bolster its in-house semiconductor efforts, the social media company said on Tuesday.

    Impact on Meta's AI and Chip Development

    The Santa Clara, California-based startup, which is backed by Intel CEO Lip-Bu Tan, is focused on designing chips based on the RISC-V architecture, an open-source alternative to the architectures made by Arm, Intel and AMD.

    Financial Aspects of the Acquisition

    Meta declined to disclose the financial terms and Rivos did not immediately respond to a Reuters request for comment.

    Rivos brings expertise in building full‑stack AI systems, Meta's vice president of engineering Yee Jiun Song said in a LinkedIn post.

    Meta aims to expand work on the Meta Training and Inference Accelerator (MTIA), its family of custom‑built in‑house chip accelerators, he said.

    The chip startup was near new funding at about a $2 billion valuation, a source told Reuters earlier.

    Meta has been one of Rivos' biggest customers and had been talking to the startup about a deal, a second source familiar with the matter said. The sources declined to be named as they were not authorized to discuss the information.

    "Our custom silicon work is progressing quickly and this will further accelerate our efforts," a Meta spokesperson said when contacted by Reuters.

    Reuters exclusively reported in March that Meta was testing its first in-house chip for training AI systems as the company seeks to cut infrastructure costs linked to its spending on advanced AI tools.

    The Instagram and Facebook owner has been spending heavily on sought-after AI chips from Nvidia.

    Bloomberg News first reported about Meta's intention to buy Rivos.

    (Reporting by Jeffrey Dastin and Krystal Hu in San Francisco and Jaspreet Singh in Bengaluru; Editing by Arun Koyyur and Tasim Zahid)

    Key Takeaways

    • •Meta is acquiring chip startup Rivos to boost its semiconductor efforts.
    • •Rivos specializes in RISC-V architecture, an open-source alternative.
    • •The acquisition aims to enhance Meta's AI and chip development.
    • •Financial terms of the deal were not disclosed.
    • •Meta has been testing in-house chips to reduce AI infrastructure costs.

    Frequently Asked Questions about Meta plans to buy chip startup Rivos to boost semiconductor efforts

    1What is RISC-V architecture?

    RISC-V is an open-source instruction set architecture (ISA) that allows developers to design custom chips without licensing fees, promoting innovation in semiconductor design.

    2What is an acquisition in business?

    An acquisition occurs when one company purchases another company, allowing the acquiring company to gain control over the target company's assets and operations.

    3What is AI chip development?

    AI chip development refers to the design and production of specialized hardware optimized for artificial intelligence tasks, enhancing processing speed and efficiency for AI applications.

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