Meta Platforms in talks to buy Alphabet chips

Meta Platforms Inc is in talks to spend billions of dollars purchasing chips from Alphabet Inc, The Information reported Monday.

Meta, a Menlo Park, California-based social media and technology company, is reportedly looking to buy or rent tensor processing units from the Mountain View, California-based technology conglomerate for use in data centres starting 2027.

In its report, The Information cited an unidentified person familiar with the talks.

In New York on Monday, Alphabet Class C shares closed up 6.3% at USD318.47 and gained 2.7% after hours, while Meta shares ended 3.2% higher at USD613.05 before rising 0.4% after hours.

Shares in Santa Clara, California-based chipmaker Nvidia Corp, a rival chipmaker known for its graphics processing units, fell 1.5% after hours in New York, having closed 2.1% higher at USD182.55.