Meta and Google Ink Multi-Billion Dollar Deal for AI Chip Development
In a groundbreaking move that reshapes the AI infrastructure landscape, Meta Platforms has signed a multi-billion dollar deal to rent Google’s custom Tensor Processing Units (TPUs) for developing next-generation AI models. The multi-year agreement, first reported by The Information on February 27, 2026, marks a significant shift in how tech giants approach AI computing power.
The deal allows Meta to access Google’s latest Ironwood TPUs through Google Cloud to train and run large language models. This diversifies Meta’s chip supply beyond its traditional reliance on Nvidia. According to sources familiar with the matter, Meta is also in discussions to potentially purchase TPUs directly for installation in its own data centers as early as 2027.
Google’s TPUs, which can deliver more than 118 times the FP8 ExaFLOPS of competitors, represent a compelling alternative to Nvidia’s market-dominant GPUs. The agreement comes as Meta projects AI infrastructure spending of up to $135 billion in 2026. Earlier this week, Meta also signed a $60 billion deal with AMD for AI chips, demonstrating the company’s strategy to secure multiple hardware suppliers for its massive AI ambitions.
Source: Silicon Angle