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Rani Molla

Meta reportedly strikes multibillion-dollar AI chip deal with Google as it struggles to design its own

Meta has signed a deal with Google to rent tensor processing units to develop new AI models and is in talks to buy the chips for its data centers, The Information reports.

The agreement comes on top of a recently announced “multi-generational” partnership with Nvidia and a chip supply deal with Advanced Micro Devices that could be worth more than $100 billion, as Meta scrapped its most advanced in-house AI training chip amid design challenges.

A Meta deal with Google, which has been rumored since November, would position the search giant more directly as a competitor to Nvidia in its core business of AI processors. Some analysts have said selling its custom chips to outside customers could become a business worth hundreds of billions of dollars for Google.

A Meta deal with Google, which has been rumored since November, would position the search giant more directly as a competitor to Nvidia in its core business of AI processors. Some analysts have said selling its custom chips to outside customers could become a business worth hundreds of billions of dollars for Google.

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SpaceX seals right to buy coding startup Cursor for $60 billion

SpaceX said today it is “working closely together” with fast-growing coding startup Cursor “to create the world’s best coding and knowledge work AI.” The post also said SpaceX would have the right to acquire Cursor later this year or make the startup “pay $10 billion for our work together.” The New York Times, citing people familiar with the matter, previously reported that the companies had agreed to an acquisition.

The news comes as SpaceX prepares for a blockbuster IPO and doubles down on AI, with a growing — if still fully aspirational — focus on space-based data infrastructure and computing.

Last month, when SpaceX hired two senior leaders from Cursor, CEO Elon Musk noted that xAI, which SpaceX acquired earlier this year, “was not built right first time around, so is being rebuilt from the foundations up.”

ChatGPT Images 2.0 sample aliens

OpenAI releases new image generation model with complex capabilities

ChatGPT Images 2.0 marks a big leap forward in image generation as OpenAI seeks to distinguish its features from Anthropic’s Claude.

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