Mark Zuckerberg-led Meta Platforms, Inc. (NASDAQ:META) has reportedly struck a multi-billion-dollar deal to rent artificial intelligence chips from Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.
Meta Expands Its AI Chip Strategy
Meta agreed to a multi-year arrangement to lease Google’s Tensor Processing Units for developing advanced AI models, Reuters reported on Thursday (via The Information).
Meta and Google did not immediately respond to Benzinga’s request for comments.
Meta Boosts AI Investment With AMD, Nvidia
The Zuckerberg-led tech giant has significantly ramped up its AI spending in the past few weeks.
Earlier this week, Advanced Micro Devices, Inc. (NASDAQ:AMD) said it could sell up to $60 billion in AI chips to Meta. AMD has given Meta a performance-based warrant that allows it to buy up to 160 million shares of AMD stock.
Earlier this month, Meta and Nvidia revealed a long-term partnership focused on AI infrastructure to help Meta expand its data centers designed for AI training and inference.
In January, Corning Incorporated (NYSE:GLW) announced a $6 billion agreement with Meta to expand U.S. data center infrastructure.
Google Pushes Its TPU Technology
Google has been working to position its TPUs as an alternative to Nvidia’s market-leading GPUs.
The chips power much of Google’s own AI systems and are available through Google Cloud.
TPU sales have become an increasingly important part of Google’s cloud revenue as the company seeks to demonstrate returns on its AI investments.
The report said Meta is also in discussions to purchase TPUs for use in its data centers as soon as next year, though the status of those talks remains unclear.
Price Action: Meta shares rose 0.51% during Thursday’s regular session but fell 0.70% in after-hours trading to $652.43, according to Benzinga Pro.
Alphabet’s Class A shares fell 1.78% during Thursday’s regular session and edged down another 0.042% in after-hours trading, while Class C shares declined 1.88% during the session and slipped an additional 0.11% after the bell.
META earns a strong Quality rating in Benzinga’s Edge Stock Rankings, though its price trend remains negative across the short, medium and long-term periods.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Koshiro K On Shutterstock.com
Recent Comments