Meta Platforms is reportedly in discussions to invest billions in Google’s artificial intelligence (AI) chips, according to The Information. This news comes amid a sustained share rally for Google’s parent company, Alphabet, as it positions itself to rival Nvidia in the AI technology sector. A potential deal would underscore the increasing momentum for Google’s chips and their long-term capacity to challenge Nvidia’s existing market leadership. Meta Platforms is the parent company of Facebook, Instagram and WhatsApp, enabling billions of people worldwide to connect, share, and discover content. The company also develops cutting-edge technologies in areas like artificial intelligence and virtual reality.
The discussions involve Meta utilising Google’s tensor processing units (TPUs) within its data centres by 2027, according to the report, citing an unnamed source familiar with the matter. In addition to a potential long-term investment, Meta is also considering renting AI chips from Google’s cloud division starting next year. Previously, Google agreed to supply up to 1 million AI chips to Anthropic PBC, further demonstrating the company’s growing presence in the AI chip market.
News of the potential Meta deal has impacted market valuations, with Alphabet poised to reach a $US4 trillion ($6.2 trillion) market valuation for the first time. Alphabet shares were up 0.9 per cent in New York trading at 12.30pm, moderating from an earlier increase of over 2 per cent. Conversely, Nvidia’s shares experienced a downturn, falling 3.7 per cent after initially plummeting by more than 6 per cent following the report.
