Meta Platforms has signed a multi billion dollar deal with Google to rent artificial intelligence chips for developing new AI models. The Information reported the development on Thursday, citing a person involved in the talks.

The agreement is multi year in nature. However, financial terms were not disclosed. Meta Platforms and Google declined Reuters request for comment.

The report comes as companies pour billions into chips and AI infrastructure. Demand for artificial intelligence continues to surge. As a result, technology firms are racing to secure high performance hardware.

Earlier this week, Advanced Micro Devices said it would sell up to 60 billion dollars worth of AI chips to Meta. In addition, the Facebook owner recently signed a deal with Nvidia to buy its current and future AI chips.

Meanwhile, Reuters reported in December that Google has been pushing to position its Tensor Processing Units, or TPUs, as an alternative to Nvidia dominant GPUs. TPU sales have become a key growth driver for Google cloud revenue. The company is seeking to demonstrate that its AI investments are delivering returns.

Furthermore, The Information reported that Meta is also in talks with Google to purchase TPUs for its data centers as early as next year. However, the status of those discussions could not be determined.

In a related development, Google has signed an agreement with an unidentified large investment firm. The partnership will fund a joint venture that leases TPUs to other customers, according to the report.

Overall, the latest move underscores how Meta Platforms continues to expand its AI infrastructure strategy amid intensifying competition in the global AI chip market.

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