Meta In Talks With Google And OpenAI To Integrate AI Models As Hyperion Data Center Faces $5 Billion Cost Backlash: Report

Meta Platforms Inc. META is reportedly in talks with Alphabet Inc.'s GOOG GOOGL Google and ChatGPT-parent OpenAI to integrate their artificial intelligence models into its apps, as the company faces scrutiny over its multibillion-dollar "Hyperion" data center project in Louisiana.

Meta Eyes Rivals' Models To Bolster Meta AI

The Mark Zuckerberg-led tech giant's new AI division, Meta Superintelligence Labs, is exploring deals to use Google's Gemini and OpenAI's GPT models to enhance conversational features in Meta AI, the company's flagship chatbot, reported Reuters (via The Information).

As per the report, which cited sources, these partnerships would be temporary as Meta races to make its next-generation model, Llama 5, competitive.

The company has already adopted Anthropic models internally for coding support, according to the report.

A Meta spokesperson confirmed its "all-of-the-above approach," saying, "We are taking an all-of-the-above approach to building the best AI products; and that includes building world-leading models ourselves, partnering with companies, as well as open sourcing technology."

Hyperion Data Center Faces Cost Controversy

The talks come as Meta ramps up investment in infrastructure, with plans to spend $50 billion on a massive Louisiana data center dubbed Hyperion.

The project, confirmed by President Donald Trump, includes $29 billion in financing from Pacific Investment Management and Blue Owl Capital.

However, the expansion has sparked backlash over Entergy Louisiana's $5 billion proposal to pass power plant construction costs to 1.1 million customers.

Consumer advocates, climate groups and retailers such as Walmart Inc. WMT have urged regulators to block the plan, warning it could burden residents with additional costs tied to tech firms' energy demands.

Entergy has defended the project, citing high-paying jobs and economic growth.

AI Expansion And Financial Strength

Meta reorganized its AI operations under Superintelligence Labs earlier this year after leadership changes and mixed reception for its Llama 4 model. Zuckerberg has since doubled down on a network of data centers to drive AI growth.

The company's financial position remains strong, reporting $25.56 billion in operating cash flow, $8.55 billion in free cash flow and $47.07 billion in cash and marketable securities for the quarter ended June 30, 2025.

Despite controversy, analysts remain bullish. Bank of America's Justin Post called Meta one of the most compelling AI investments, citing its $14 billion stake in Scale AI and ad revenue growth, while highlighting elevated expectations tied to its AI ambitions.

Price Action: Meta shares slipped 1.65% in Friday's regular trading session, per Benzinga Pro.

Benzinga's Edge Stock Rankings suggest META maintains an upward trend across short, medium and long-term periods. Further performance insights are available here.

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