Facebook parent Meta is in discussions with Alphabet's Google to spend billions on using Google's AI chips in its data centers from 2027 and to rent chips from Google Cloud by next year, The Information reported on Monday.

Google has pitched tensor processing units, or TPUs, as a cheaper alternative to Nvidia chips, useful for firms seeking higher security standards, the report said, adding that Google has discussed aiming for 10% of Nvidia's revenue with its TPU chip business.

The TPUs, available for rent on Google Cloud, serve as an alternative to supply-constrained Nvidia chips.

Meta, Google and Nvidia did not immediately respond to requests for comment. Reuters could not immediately verify the report.

Meta announced earlier this year it will invest $600 billion in U.S. infrastructure and jobs over the next three years, including AI data centers.

The company has been one of Nvidia's biggest customers since 2022, amassing an arsenal of graphics processing units to train its models and also serve the more than 3 billion people who use its apps each day.

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