Meta is reportedly in advanced talks to secure large quantities of Google’s Tensor Processing Units (TPUs) for AI development. The plan involves renting the hardware in 2026, with a possible direct purchase in 2027. This marks a major shift, as Google has historically limited TPUs to internal use, while Meta has relied on CPUs and GPUs from various vendors.
The news sparked market reactions, boosting Alphabet and Meta stocks while Nvidia fell. The deal highlights growing demand for AI infrastructure amid constrained supply chains, component shortages, and rising data-center costs. Companies are diversifying compute strategies, exploring alternative architectures, and seeking long-term hardware commitments amid uncertainty about future performance and relevance.
