The deal is said to be worth billions to both firms, and has already helped boost Google's parent company to a near $4 trillion valuation
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(Image credit: Getty Images/Andrew Caballero-Reynolds) Meta may be on the cusp of spending billions on Google AI chips to power its future developments, as the social-media giant is reportedly in talks to both buy and rent Google compute power for its future AI endeavours, as reported by The Information, via Reuters . The ongoing negotiations reportedly involve Meta renting Google Cloud Tensor Processing Units (TPU) in 2026, before purchasing them outright in 2027.
This news shows continuing collaboration between the companies, despite a recent pause on their undersea cable project s.
To date, Google has mostly leveraged its TPUs for its internal efforts, so this move, if it comes to fruition, would be a change of tactic that could help it capture a sizeable portion of the AI chip business. Considering that few, if any, companies have figured out how to turn a profit from developing AI just yet , Google may be looking to get in on Nvidia's act. The long-time GPU maker has made untold billions since the start of the AI craze, propelling it to become the world's most valuable company within a short timeframe.
Meta reportedly buying RISC-V AI GPU firm Rivos
Key considerations
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- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/billion-dollar-ai-chip-deal-between-google-and-meta-could-be-on-the-cards-would-involve-renting-google-cloud-tpus-next-year-outright-purchases-in-2027#main
- https://www.tomshardware.com
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