Assuming this has a lot to do with Google's TPUs. Google is well positioned to be the AWS for AIs given the increased efficiency of TPUs, which only they have.
Could be other way round too. Meta wants to use their own data centers capacity for their custom AI solutions. Generic compute and storage for online and batch workloads can be moved to Google cloud infra.
Also, AI training can be centralized but user serving benefits from being close to the user. So Meta might be building huge new data centers for AI training and centralized analytics etc, while using plenty of DCs owned by others around the globe to run their apps.
GCP getting second tier TPU allocation b/c TPU cannot be enough to meet GDM needs. At this point, it would be very stupid for external customers betting on TPUs (I am looking at Apple).
Probably that there are already several generations of TPU hardware - the best ones go to internal use, while the older hardware gets rented out to gcp to amortize the development costs.
Assuming they don’t screw it up. Google has a ton of great stuff but when it comes to actually making into a product they flounder. GCP still needs a lot of work.
