This article first appeared on GuruFocus.
Meta Platforms (NASDAQ:META) stock is drawing attention after entering a multi-billion-dollar agreement to lease artificial intelligence chips from Google (NASDAQ:GOOGL), according to a Friday report by The Information, citing a person familiar with the matter.
The company is also reportedly in preliminary discussions to purchase Google’s Tensor Processing Units (TPUs) for its data centers as early as 2027, though details on the progress of these talks remain unclear.
Separately, Google and an undisclosed investment firm reached a funding arrangement for a joint venture that would lease TPUs to other customers. Google’s TPUs are custom-designed chips optimized for training and inference of AI models efficiently, and the company is positioning them as a potential competitor to Nvidia’s (NASDAQ:NVDA) dominant GPUs.
Meta is expanding its AI infrastructure aggressively. Earlier this week, it said it will deploy up to six gigawatts of AMD (NASDAQ:AMD) chips to power its next-generation systems. Last week, Meta finalized an agreement to integrate millions of Nvidia chips into its AI data centers. Analysts view these moves as part of a broader trend in the tech sector, where companies are investing heavily in AI hardware to maintain a competitive edge.
