Meta Platforms and Alphabet’s Google (GOOGL) have reportedly signed a new multi-billion-dollar AI chip rental deal, a move that little changed either stock. Meta will begin renting artificial intelligence chips from Google to develop new AI models, per The Information. In addition to the chip-rental arrangement, Meta is also reportedly in discussions to directly purchase Google’s Tensor Processing Units (TPUs) for its own data centers, potentially beginning next year.
Separately, Google and an undisclosed investment firm reached a funding arrangement for a joint venture that would lease TPUs to other customers. Google’s TPUs are custom-designed chips optimized for training and inference of AI models efficiently.
Meta has made several big-money deals in AI outside of Google since the start of 2026. Earlier this week, Facebook’s developer and Advanced Micro Devices (AMD) agreed to a multiyear deal under which Meta will purchase upward of 6 gigawatts of AI chips as part of its massive AI build-out. Furthermore, Meta announced another separate deal with Nvidia (NVDA) in early February. The partnership will see the chipmaker provide Meta with millions of its Blackwell and Rubin GPUs. NVIDIA also said Meta will host the first large-scale deployment of its Grace CPU servers.
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Over the past week, META has remained down just over 1% on the stock market. This hints at a weaker reception from investors over its total focus on AI. In addition to this, Block’s recent mass layoff of employees has also run hard on tech stocks, showing investors that big tech is leaning further into AI-prioritized labor in the workforce.
As part of its expansion strategy, Meta began construction of a new data center in Lebanon, Indiana, earlier this month, with total investment expected to exceed $10 billion, underscoring the company’s long-term commitment to AI infrastructure. Despite META investors reacting cautiously to increased AI spending, META stock is still a buy throughout Wall Street. Most analysts agree on Meta’s growth potential, with price targets ranging from $800 to $935.