Meta Platforms (NASDAQ:META) is reportedly negotiating a multi-billion-dollar agreement with Google (NASDAQ:GOOG) to acquire AI chips for its data centers starting in 2027, according to a Tuesday report from The Information.
People familiar with the discussions said the talks also involve Meta potentially renting Google Cloud chips as early as next year. The arrangement would support Google’s broader effort to push its tensor processing units (TPUs)—designed specifically for artificial intelligence computing—into customers’ own data-center environments.
If an agreement is reached, it would mark a notable strategic pivot for Google, which until now has restricted TPU use to its internal infrastructure. Opening up TPUs for external deployment could significantly widen Google’s chip footprint and position the company as a more direct challenger to Nvidia in the rapidly expanding market for AI data-center processors.
The report added that some Google Cloud executives believe the initiative could help the company capture up to 10% of Nvidia’s annual revenue—an amount worth several billion dollars.