Meta Platforms (META) inked a multi-billion-dollar deal to rent artificial intelligence chips from Google (GOOGL), The Information reported, citing a person involved in the talks.
Meta (META) is also in talks to buy Google’s (GOOGL) Tensor Processing Units (TPUs) for its data centers as early as 2027. It’s unclear how advanced these discussions are.
The report added that Google (GOOGL) and an unidentified large investment firm reached a deal for funding a joint venture that would lease TPUs to other customers.
Google’s (GOOGL) TPUs are custom-developed chips designed for training and inference of AI models cost-efficiently. It is reportedly pushing to make its TPUs a viable alternative to Nvidia’s market-leading GPUs.
Tech companies have been ramping up investments in AI chips and infrastructure to maintain their edge in the AI race.
Meta (META) this week said it would deploy up to 6 gigawatts of AMD (AMD) chips to power its next generation of AI infrastructure. Last week, Meta struck a deal to use millions of Nvidia (NVDA) chips in its AI data centers.