Meta Platforms and Alphabet’s Google have signed a multi-billion-dollar AI chip rental deal. Meta will rent Google’s Tensor Processing Units (TPUs) and is in discussions to purchase them directly. This follows other major AI hardware deals for Meta with AMD and Nvidia. Despite these significant infrastructure investments, META stock has remained largely flat, indicating cautious investor sentiment.
Meta Platforms has reportedly signed a new multi-billion-dollar AI chip rental agreement with Alphabet’s Google. According to reports, Meta will begin renting artificial intelligence chips from Google to aid in developing new AI models. The companies are also in discussions for Meta to directly purchase Google’s Tensor Processing Units for its own data centers, potentially beginning next year.
In a separate arrangement, Google and an undisclosed investment firm created a funding agreement for a joint venture. This entity would lease TPUs to other customers. Google’s TPUs are custom-designed chips optimized for efficiently training and running AI models.
This Google deal adds to several other major AI hardware commitments Meta has made since the start of 2026. Meta and Advanced Micro Devices (AMD) recently agreed to a multiyear deal where Meta will purchase upward of 6 gigawatts of AI chips. Furthermore, Meta announced a separate partnership with Nvidia (NVDA) in early February.
That Nvidia partnership involves the chipmaker providing Meta with millions of its Blackwell and Rubin GPUs. NVIDIA also said Meta will host the first large-scale deployment of its Grace CPU servers. As part of its expansion, Meta began constructing a new data center in Lebanon, Indiana, with total investment expected to exceed $10 billion.
Over the past week, META stock remained down just over 1%. This hints at a weaker reception from investors regarding its total focus on AI. Recent mass layoffs at Block have also impacted tech stocks, signaling a shift toward AI-prioritized labor.
Despite investor caution over increased AI spending, META stock is still viewed as a buy across Wall Street. Most analysts agree on Meta’s growth potential, with price targets ranging from $800 to $935.
