Source: Insiders: Microsoft in talks with Broadcom for custom chip collaboration.

According to a person involved in the negotiations, Microsoft is currently in talks with Broadcom to collaborate on designing future custom chips. If the collaboration is successful, Microsoft will switch from their current custom chip supplier Marvell to Broadcom. The background of such negotiations is that the demand for custom chips is increasing rapidly - companies like Microsoft are aggressively purchasing more semiconductors to expand their artificial intelligence product offerings. Currently, NVIDIA dominates the semiconductor market, while Broadcom is seen as one of NVIDIA's most competitive potential rivals. At the same time, two individuals involved in the negotiations revealed that Marvell has recently agreed to waive some of the upfront engineering fees to compete for more business from Meta. Three individuals involved in the chip development also revealed that Meta plans to launch this custom chip in 2027.