NVIDIA and AMD Chips Still Not Enough? Meta’s Latest Move: Leasing Google TPUs

Despite growing Wall Street anxiety over the massive capital expenditures of AI giants, Meta shows no signs of slowing its expansion.

According to sources speaking to the media on Thursday, Meta has signed a multi-billion dollar agreement with Google to lease AI chips for the development of new artificial intelligence models.

This move comes as major tech players pour hundreds of billions into chip procurement and infrastructure to meet surging AI demand. Meta has consistently been one of the most aggressive spenders in the space.

Earlier this week, AMD announced it would sell up to $60 billion worth of AI chips to Meta. This followed a deal earlier this month between Meta and NVIDIA for the purchase of both current and future-generation AI processors.

However, even these massive contracts seem insufficient to satisfy Meta’s appetite, leading to this multi-year leasing arrangement with Google.

In recent months, Google has been positioning its TPU (Tensor Processing Unit) as a viable alternative to NVIDIA's GPUs. That strategy appears to be paying off: TPU sales have become a significant growth engine for Google Cloud revenue, proving to investors that its AI investments are yielding tangible returns.

According to reports on Thursday, Meta is also in discussions with Google regarding the direct purchase of TPUs for its own data centers. While such a deal could materialize as early as next year, the current status of these negotiations remains uncertain.

The report further noted that Google has signed an agreement with an unnamed major investment firm to form a joint venture, which will lease TPUs to other third-party customers.