Meta Platforms is reportedly negotiating with Google to spend billions on the latter’s custom AI chips for its data centres. If the deal goes through, it could reshape the AI hardware market and position Google as a real competitor to Nvidia.
According to reports, Meta may start renting Google’s Tensor Processing Units through Google Cloud as early as next year. It is also considering buying and using the chips in its own data centres from 2027. This would be a major win for Google, since Meta is one of Nvidia’s biggest customers and plans to spend tens of billions on AI infrastructure this year.
The move is part of Google’s plan to get more companies to use its TPUs for AI workloads in their own facilities. Traditionally, Google used TPUs mainly for its own internal operations. Google Cloud executives say wider adoption could let the company capture up to 10% of Nvidia’s yearly data centre revenue.
Demand for custom chips like TPUs has surged as companies look for alternatives to Nvidia’s costly and limited supply GPUs. The news caused Alphabet shares to rise while Nvidia stock dipped. Neither company has officially commented, so the deal remains unconfirmed.
