By Sheryl Sheth
Publication Date: 2025-11-25 06:42:00
Shares of Alphabet (GOOGL) jumped 2.6% in after-hours trading yesterday, while Nvidia (NVDA) and Advanced Micro Devices (AMD) fell 1.5% and 1.7%, respectively. The move follows a report by The Information that Alphabet is promoting its custom tensor processing units (TPUs) to Meta Platforms (META) and major financial institutions. The tech giant is taking on Nvidia in a big way by pitching the deployment of its in-house chips for large-scale artificial intelligence (AI) workloads.
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Until now, Google has used these TPUs only in its own cloud data centers and rented the infrastructure to others. The company is now shifting its strategy, selling the TPUs directly to third parties, citing enhanced security and compliance needs.
Google-Meta Discuss Multibillion Dollar TPU Deal
Facebook and Instagram parent Meta, is reportedly in talks to spend billions to add Google’s TPUs to its data centers starting in 2027. It may also begin renting TPU capacity from Google Cloud next year. Currently, Meta relies heavily on Nvidia GPUs for its AI systems.
If the deal with Meta happens, it would be a major boost for Google’s chip business. Google has been telling potential clients that using TPUs on-site can help them handle strict data security and compliance rules. Google already has a deal to sell up to 1 million TPUs to AI startup Anthropic PBC (PC:ANTPQ).
Google Cloud executives project capturing up to 10% of Nvidia’s annual revenue by…