The race for artificial intelligence supremacy has created some unexpected alliances in Silicon Valley. Meta Platforms has reportedly signed a multi-billion-dollar deal to rent AI chips from its longtime rival, Google. According to a report from The Information, the agreement spans several years and focuses on giving Meta access to Google’s custom-built hardware to train its next generation of advanced AI models.
Meta is betting big on Google’s custom TPU with multi-billion-dollar deal
This Meta-Google deal centers on the latter’s Tensor Processing Units, commonly known as TPU. Nvidia, the biggest hardware provider for AI development and training, currently dominates the market with its GPUs. However, Google has spent years developing TPUs as a specialized and cost-effective alternative. The deal reinforces Google’s internal silicon, making it a viable option for the world’s largest tech companies. It also helps justify the Alphabet’s massive investments in cloud infrastructure.
Lately, Meta has been working on ensuring as much computing power as possible. Just recently, the company announced a $60 billion deal with AMD and continues to be a major customer for Nvidia’s high-end processors. Adding Google’s TPUs to its arsenal helps Mark Zuckerberg’s company to effectively “future-proof” its data centers. Meta is also ensuring it has the hardware necessary to keep pace with competitors like OpenAI and Microsoft.
Beyond just renting equipment, the two giants are reportedly discussing an even deeper relationship. Sources suggest that Meta might purchase TPUs directly for its own data centers as early as next year or 2027. Google’s chips have historically been reserved for its own services or cloud customers rather than sold as standalone hardware to other tech titans. So, this would represent a significant shift in the industry.
Both Meta and Google have declined to comment officially on the specifics of this deal, according to reports. However, we will probably get new related developments in the coming weeks.
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