Meta’s AI Ambitions: A Deep Dive into Multi-Billion Dollar Chip Deals

Meta Platforms has inked a multi-billion dollar agreement with Google to rent artificial intelligence chips, aiming to develop new AI models. This deal forms part of a broader trend where companies are heavily investing in AI infrastructure to meet increasing demand, using TPUs and GPUs from major tech players.

Meta Platforms has entered a multi-billion dollar agreement to rent artificial intelligence chips from Google, according to a report by The Information. This move is part of Meta's effort to develop new AI models amidst a surge in demand for advanced artificial intelligence systems.

The multi-year deal highlights an industry trend where key players like Meta and Google are investing heavily in AI chips and infrastructure. Despite requests for comments from Reuters, both tech giants remain tight-lipped about the specifics. Additionally, Advanced Micro Devices recently announced it plans to sell up to $60 billion in AI chips to Meta.

Google is also making strides by promoting its Tensor Processing Units (TPUs) as strong competitors to Nvidia's dominant GPUs, aiming to boost its cloud revenue. Meanwhile, Meta is reportedly negotiating with Google for TPUs in its data centers by next year, although the details of these discussions are yet to be finalized.

(With inputs from agencies.)