Meta’s AI Chip Spending Spree Continues with Google TPU Deal
Meta Platforms has inked a multi-billion-dollar agreement to rent Google's Tensor Processing Units (TPUs) for AI model development, marking its third major chip deal this week. The social media giant is also negotiating to purchase TPUs for its data centers as early as 2027, signaling an aggressive infrastructure buildout.
This follows separate agreements with Nvidia and AMD—the former involving millions of Blackwell and Rubin GPUs, the latter a $100 billion five-year commitment. Analysts maintain a Strong Buy rating on META with an $864.62 price target, reflecting 31.6% upside potential.
Google's TPU leasing strategy now extends beyond its cloud division, with a joint venture in development to offer the chips to external clients. The MOVE underscores the intensifying arms race for AI hardware among tech titans.
