Broadcom CEO Joins The Board Of Directors Of Meta Platforms

JAKARTA - Meta Platforms Inc., on Wednesday 14 February added Broadcom CEO Hock Tan, to his board of directors, presenting the head of a company known for its network chips.

Broadcom is one of Meta's key partners in data center ambitions and its efforts to design its own chips, and also offers services to help customers design their own chips for artificial intelligence (AI) work.

Technology to create chips that can quickly move and process data has become a key battleground as the AI system absorbs huge amounts of information.

In regular charging associated with Tan's appointment to the board of directors, Meta said it spent about $500 million on components and design services from Broadcom in 2023.

Although Nvidia has the top market share in versatile AI chips, all the largest tech companies - including Meta, Google, Amazon.com, and Microsoft - are also designing dedicated chips to complement Nvidia's offerings.

Tan has used Broadcom as a corporate vehicle to build a loosely related tech company kingdom that analysts say is more similar to private equity portfolios that focus on cash flow than traditional operating companies.

Broadcom last year completed a $69 billion deal to buy VMware and soon after that cut about 1,300 workers.

Meta on Wednesday also announced that John Arnold, a former energy trading executive at Enron who is now involved in the high-voltage power transmission line project, will join their board of directors.