Meta Platforms Signs Multibillion-Dollar Google AI Chip Lease; Instagram Time Spent Up 19.2%
On February 27, Meta Platforms inked a multiyear, multibillion-dollar deal to lease Google’s tensor processing units for developing new AI models. Instagram global time spent climbed 19.2% year-over-year in January while US engagement rose 16.5% despite only 2% monthly user growth.
1. Google TPU Lease Agreement
On February 27, Meta Platforms signed a multiyear agreement to lease Google’s tensor processing units (TPUs) valued in the multibillion-dollar range to support accelerated development of its next-generation AI models.
2. Instagram Engagement Surge and Analyst Outlook
Analyst Andrew Boone maintained a Market Outperform rating with a $900 price target after Instagram global time spent jumped 19.2% year-over-year in January and US engagement increased 16.5% despite only 2% monthly active user growth.
3. Meta Platforms Business Segments
Meta Platforms operates two primary segments: Family of Apps, which includes Facebook, Instagram, Threads, WhatsApp and Messenger; and Reality Labs, which focuses on metaverse initiatives and VR/AR hardware development.