According to sources reported by The Information, Google is currently engaged in discussions with Meta regarding a multi-billion-dollar agreement. Under this proposed deal, Google would begin supplying custom AI chips tailored for Meta's data centers starting in 2027. Additionally, Google plans to lease its Google Cloud's TPU (Tensor Processing Unit) computing capabilities to Meta as early as next year.

Should this agreement be finalized, it would represent a major strategic pivot for Google in the AI infrastructure sector. Traditionally, Google has limited the availability of its TPUs to customers using its cloud platform. However, the company is now considering allowing these chips to be deployed on-premises at customer sites. This move is seen as a direct challenge to Nvidia's stronghold in the market. Executives at Google Cloud are optimistic that this strategy could enable them to capture at least 10% of the annual revenue share currently enjoyed by Nvidia.