Facebook parent Meta is in discussions with Alphabet's Google to spend billions on deploying Google's AI chips in its data centers starting in 2027 and to begin renting chips from Google Cloud as early as next year, The Information reported on Monday.

Google has positioned its tensor processing units (TPUs) as a cheaper alternative to Nvidia's AI chips and as a strong option for companies requiring higher security standards. The report added that Google has discussed targeting 10% of Nvidia's revenue through the expansion of its TPU chip business.