By @TheWeekUK
Publication Date: 2025-11-26 14:22:00
Meta is in talks to shift part of its AI infrastructure to Google-made chips, instead of ones made by Nvidia, in a deal worth billions of dollars that could permanently upend the world of tech.
This has been a “rocky couple of weeks” for Nvidia, said Brent D. Griffiths in Business Insider. Following reports of the Meta deal, Nvidia was trading down by more than 3%, and “lingering doubts” about the company surrounding the AI bubble are beginning to “creep back in”.
Nvidia customers have been crying out for “more competition” in the chip market, and one “may have been hiding in plain sight”, said Dina Bass in Bloomberg. Google’s tensor processing units (TPUs) were first released 10 years ago, and are ideally suited to generating responses to ChatGPT or Claude, said the outlet. They are “less adaptable” and “more specialised” than Nvidia’s graphics processing units (GPUs), but crucially they offer a “less power-hungry” system at a lower cost. Google’s advancements “underscore how major AI names are embracing TPUs as they race to add computing power to cope with runaway demand”.
Sign up for The Week’s Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News…
