Brussels Targets Meta’s ‘Autopilot’ Design as Company Prepares Proprietary AI Chips

Meta could face up to $12B in EU fines over addictive design, while planning in-house AI chips with Broadcom and TSMC to cut Nvidia dependency. Stock up 14.46% in 30 days.

Meta Platforms finds itself caught between two powerful forces this summer: a regulatory onslaught in Brussels that could cost billions, and an internal push to cut its dependency on external chipmakers with its own AI silicon. The stock, meanwhile, has been staging a steady recovery, up 14.46% over the past 30 days and closing Wednesday at €585.80 — a 1.14% gain on the day.

The European Commission has issued preliminary findings under the Digital Services Act accusing Meta of deliberately engineering Facebook and Instagram to hook users into an “autopilot mode.” Three design elements are singled out: endless scrolling, automatic video playback, and persistent push notifications. The regulators argue these features maximise engagement at the expense of mental and physical health, particularly among minors, and that Meta failed to adequately assess the risks of its personalised recommendation systems.

Under the DSA, fines can reach 6% of global annual revenue. With Meta’s 2025 revenue pegged at roughly $201 billion, the theoretical maximum penalty climbs to nearly $12 billion. Beyond the financial threat, Brussels wants Meta to disable autoplay and infinite scrolling as default settings and introduce screen-time breaks that cannot be dismissed at the tap of a button. Meta disputes the allegations, pointing to existing safeguards for younger users and arguing its current time-management tools are sufficient. Because the company can still formally respond, experts say a final ruling could drag into late 2026 or early 2027.

While the EU focuses on curbing engagement, Meta is working furiously to reinforce the technological infrastructure that drives it. The company plans to unveil its own in-house AI chips in September, developed in partnership with Broadcom and Taiwan Semiconductor Manufacturing. Meta aims to reach 14 gigawatts of computing capacity by 2027, doubling the 7-gigawatt target for 2026, and it intends to roll out updated chip designs every six months. The strategy is designed to reduce dependence on Nvidia and other external suppliers, giving Meta both cost savings and strategic control over the hardware that powers its AI models and recommendation engines.

This chip push is part of a broader roadmap that weaves artificial intelligence and immersive technologies deeper into Meta’s product family: Facebook, Instagram, Messenger, WhatsApp, and the Reality Labs division focused on augmented and virtual reality.

The stock’s recent climb reflects investor confidence in that long-term vision, but the numbers also show how far the shares have to go. Wednesday’s close of €585.80 stands 12.40% above the 50-day moving average of €521.17 and 5.79% above the 200-day average of €547.48. The relative strength index of 66.5 suggests the stock is approaching overbought territory without having crossed it. Yet the share price still lags 13.57% below the 52-week high of €677.80 reached on July 31, 2025. On a year-to-date basis, Meta is up 4.32%, while on a trailing twelve-month view it remains 5.41% in the red. Annualised 30-day volatility of 49.41% indicates that investors should brace for further sharp swings. The company’s market capitalisation stands at roughly €1.483 trillion.

The deeper tension lies in the business models themselves. Meta’s advertising revenue depends on keeping users glued to its platforms, which is precisely what the EU’s proposed design changes would weaken. Forcing a dial-back of recommendation algorithms and addictive features strikes at the heart of the commercial engine. At the same time, owning the compute layer through custom chips and a massive build-out of data-centre capacity could eventually lower costs and give Meta an edge in the race for AI leadership — an edge that might offset regulatory drags over time.

An expert panel convened by the EU is expected to release recommendations on social-network safety standards in the coming weeks. The Commission’s final decision may not arrive until 2027. For now, Meta has a window to respond to the allegations and to demonstrate to investors that its internal technological ambitions can flourish even as external regulatory pressures intensify.