Alphabet shares climbed after reports that Meta Platforms is in advanced negotiations to secure substantial access to Google's custom AI chips and cloud infrastructure. The proposed arrangement would reportedly involve Meta renting chip capacity beginning in 2026 and deploying hardware in its own data centers in 2027.
Sources say the multi-year agreement could be worth billions and would give Meta prioritized access to Google's next-generation Tensor Processing Units (TPUs) together with engineering support. The move would signal a notable shift in AI infrastructure partnerships as major cloud and AI companies seek alternatives to a market long dominated by GPU supplier Nvidia.
For Google, the deal would boost its cloud revenue and validate its TPU roadmap as hyperscalers diversify their hardware mix. For Meta, the arrangement would support large-scale model training demands as the company scales its Llama models and other AI initiatives.
Neither company confirmed the talks. Analysts say the reported discussions reflect broader industry trends toward collaboration on constrained AI compute resources and could reshape competitive dynamics in AI hardware and cloud services.