Four generations, MTIA 300, 400, 450, and 500, have been produced within less than two years, with several already in production and others scheduled for mass deployment in 2026 and 2027. The quick pace is deliberate. Rather than betting on a single chip generation and waiting years for results, Meta has adopted a roughly six-month cadence per generation, using modular chiplet architecture to enable incremental upgrades without replacing entire rack systems.
There's a big bet that the quality of software that gets produced is going to improve exponentially. If that doesn't happen, that's a big threat. Many AI coding tools can generate apps quickly, but the output can still be buggy, fragile, or difficult to scale. The vibe coding industry depends on those systems getting better.
CEO Elon Musk announced Macrohard - a tongue-in-cheek reference to 'Microsoft' - in August. Since 'software companies like Microsoft do not themselves manufacture any physical hardware, it should be possible to simulate them entirely with AI,' he said on X at the time. The effort has aimed to build an AI white-collar worker.
If you sell the tool, you're in a race against the model. But if you sell the work, every improvement in the model makes your service faster, cheaper, and harder to compete with. A company might spend $10K a year for QuickBooks and $120K on an accountant to close the books. The next legendary company will just close the books.
Sora is currently only available on its website or as a standalone app, which has fallen shy of the popularity of ChatGPT. This update would allow users to access Sora's video generation capabilities directly within ChatGPT itself, much like the addition of image generation capabilities in the chatbot last year.
The need for higher performance and more energy-efficient chips is driving high growth rates for leading-edge logic, high-bandwidth memory and advanced packaging. These are areas where Applied is the process equipment leader, and we expect to grow our semiconductor equipment business over 20 percent this calendar year.
