The shares of U.S. tech giant Meta Platforms (META) appeared rather indifferent during early trading on Thursday. This is despite the announcement of a new multi-year collaboration with semiconductor company Arm Holdings (ARM) to boost the efficiency of its AI systems “across every layer of compute.”
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The partnership, disclosed on Wednesday, will see Meta and Arm — which is majority-owned by Japan’s SoftBank (SFTBY) — working together to scale Meta’s AI setup, from artificial intelligence software to data center infrastructure. The new deal builds on existing efforts between both companies to co-design hardware and software systems.
Meta to Get Boost from Arm’s Neoverse
Under the partnership, systems that power Meta’s content discovery and personalization on apps such as Facebook and Instagram will get a facelift from Arm’s data center platforms powered by Neoverse, Arm’s energy-efficient server chips.
Already, both companies have joined forces to improve the efficiency of Meta’s AI software setup, including PyTorch. Originally created by Meta, PyTorch is an open-source AI software framework popular among developers and used to build, train, and run machine learning models.
“Partnering with Arm enables us to efficiently scale [AI] to the more than 3 billion people who use Meta’s apps and technologies,” noted Santosh Janardhan, Meta’s head of infrastructure.
‘The Future of AI Everywhere’
Furthermore, under the collaboration with Arm, ExecuTorch — a tool that helps run AI models directly on small devices such as phones, watches, or sensors without requiring the internet — will also be enhanced with KleidiAI, Arm’s optimization software based on Arm’s chips that helps AI models run faster and use less power. The goal is to move towards “improving efficiency on billions of devices.”
“These open source technology projects are central to Meta’s AI strategy – enabling the development and deployment of everything from recommendations to conversational intelligence,” Arm said in a statement.
Continuing, Arm said both companies will keep working to add more enhancements to the open source projects. Together, they want to drive “the future of AI everywhere” from “megawatts to milliwatts” for billions across the world.
The new partnership comes even as Meta is building a $1.5 billion data center in Texas to expand its AI cloud computing power, while Arm is engaging with new AI heavyweight OpenAI (PC:OPAIQ) to develop data center chips.
Is META a Good Stock to Buy Now?
Turning to Wall Street, Meta’s shares currently enjoy a Strong Buy consensus recommendation, as seen on TipRanks. This is based on 41 Buys and six Holds assigned by 47 Wall Street analysts over the past three months.
Moreover, at $877.91, the average META price target suggest a 22% growth potential from the current level.
