Google signs multibillion-dollar AI chip deal with Meta, Information reports

Meta Platforms has signed a deal to rent Google's AI chips, known as tensor processing units (TPUs), to develop new AI models, the Information reported on Thursday, citing a person involved in the talks.

The multi-year deal is worth billions of dollars, the report added, and likely to ramp up .

Meta and Google did not immediately respond to Reuters' requests for comment.

Meta is also reportedly in discussions with Google to potentially purchase TPUs for its data centers as early as next year, the report said, although the status of those discussions could not be determined.

Earlier this week, Advanced Micro Devices said it would sell up to $60 billion in AI chips to Meta.

The Facebook owner earlier this month also signed a deal with Nvidia to buy its current and future AI chips.

Reuters reported in December that Google was pushing to make its Tensor Processing Units (TPUs) a viable alternative to Nvidia's market-leading GPUs.

TPU sales have become a crucial growth engine of Google's cloud revenue as it seeks to prove to investors that its AI investments are generating returns.

The Information also said on Thursday that Google has established a joint venture to lease its tensor processing units to other AI clients.

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