Meta Platforms has entered into a multi-billion dollar agreement with Google to lease Google’s tensor processing units (TPUs) for the development of new artificial intelligence models, according to a report published Thursday by The Information.
The deal, described as a multi-year arrangement, will provide Meta with access to Google’s specialized AI chips. The Information’s reporting cited a person with knowledge of the agreement. Neither Meta nor Google immediately responded to requests for comment from Reuters regarding the reported arrangement.
The agreement comes as demand for AI processing power surges, driven by the rapid development of generative AI and large language models. Nvidia, a leading manufacturer of AI chips, recently indicated that a shortage of its gaming chips is expected to persist through the end of the year, highlighting the constrained supply in the market. ASML, a key supplier of equipment for chip manufacturing, announced on Thursday that its next-generation extreme ultraviolet (EUV) tools are ready for mass production, a development expected to ease some of the bottlenecks in AI chip production.
The financial terms of the Meta-Google deal were not disclosed, but The Information reported it is worth billions of dollars. This investment underscores Meta’s commitment to advancing its AI capabilities, as the company competes with other tech giants in the rapidly evolving AI landscape. The deal also represents a significant revenue stream for Google, as it seeks to monetize its TPU technology.
Global Banking & Finance Review reported on Thursday that Google signed a multibillion-dollar AI chip deal with Meta, alongside news of Ukrainian missile strikes on energy installations in Russia and a new Stellantis CEO’s compensation package.