U.S. stocks mixed; investors digest economic data as Nvidia weighs
Investing.com -- Meta Platforms is discussing a potential multi-billion dollar deal with Google to purchase chips for its data centers beginning in 2027, according to a Tuesday report by The Information.
The talks also include the possibility of Meta renting chips from Google Cloud as early as next year, according to people involved in the discussions. This arrangement is part of Google’s larger initiative to encourage customers to adopt its tensor processing units (TPUs), which are specialized for AI workloads, in their own data centers.
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If finalized, the deal would represent a strategic shift for Google, which has historically used its TPUs exclusively in its own data centers. This expansion could significantly broaden the market for Google’s chips and position the company as a direct competitor to Nvidia in the lucrative data-center processor market that powers AI services.
Some Google Cloud executives believe this strategy could help the company capture as much as 10% of Nvidia’s annual revenue, which would translate to billions of dollars, the report noted.