Meta Platforms is reportedly negotiating a multi-billion-dollar agreement with Google to purchase its advanced Tensor Processing Units (TPUs), marking one of the biggest potential chip partnerships between two tech giants. According to sources familiar with the matter, Meta aims to use Google’s AI accelerators to power its rapidly expanding artificial intelligence ecosystem, including Llama models, recommendation engines, and generative AI tools.

► Growing AI Ambitions Drive Meta’s Chip Shopping Spree

The company has already invested heavily in Nvidia GPUs, but surging demand for computing power has prompted it to seek additional suppliers. Meta’s CEO Mark Zuckerberg has previously stated that the company needs over 350,000 Nvidia H100-class chips to support its upcoming AI systems. The talks with Google reportedly focus on securing long-term access to Google’s TPU v5 and future chip generations.

► Google’s TPUs Offer an Alternative to Nvidia Dominance

Google has spent years developing TPUs for its own AI training and inference workloads. These chips are known for their performance in large-scale machine learning and more cost-efficient energy consumption compared with traditional GPUs. A deal with Meta could significantly boost Google’s position in the competitive AI chip market, historically dominated by Nvidia.

► Potential Collaboration Beyond Hardware

Industry analysts suggest that hardware may be only part of the discussion. The partnership might also include Google Cloud services, enabling Meta to deploy workloads across Google’s infrastructure. While Meta primarily runs its own data centers, a hybrid arrangement could help manage peak AI demand and reduce deployment bottlenecks.

► AI Arms Race Pushes Tech Giants to Expand Supplier Networks

As the AI boom accelerates, securing chip supplies has become a strategic necessity. Companies like Meta, Microsoft, Amazon, and Google are all racing to expand semiconductor pipelines through both in-house chip design and external partnerships. For Meta, diversifying suppliers reduces risk if competition for Nvidia GPUs intensifies.

► Deal Still Under Negotiation

The discussions remain ongoing, and neither Meta nor Google has issued formal statements. However, insiders suggest that the negotiations are serious and could result in a landmark collaboration that reshapes the balance of AI hardware procurement across Silicon Valley.