By Nick Turner
Publication Date: 2025-11-25 01:46:00
(Bloomberg) — Nvidia Corp.’s stock slid after the Information reported that Meta Platforms Inc. was in talks to spend billions on Google’s AI chips, suggesting the internet search leader is making headway in efforts to create a rival to the industry’s bestselling AI accelerator.
Meta is in discussions to use the chips — known as tensor processing units, or TPUs — in data centers in 2027, according to the Information, which cited an unidentified person familiar with the talks. Meta also may rent chips from Google’s cloud division next year, the news outlet said.
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Shares of Alphabet Inc., Google’s owner, gained as much as 2.7% in late trading, while Nvidia slumped 2.7% at one point.
An agreement would help establish TPUs as an alternative to Nvidia’s chips, the gold standard for big tech firms and startups from Meta to OpenAI that need computing power to develop and run artificial intelligence platforms. Google previously sealed a deal to supply up to 1 million of the chips to Anthropic PBC. Still, Nvidia remains dominant in the market.
After the Anthropic deal was announced, Seaport analyst Jay Goldberg called it a “really powerful validation” for TPUs. “A lot of people were already thinking about it, and a lot more people are probably thinking about it now,” he said.
Representatives for Meta declined to comment, while Google didn’t immediately respond to requests.
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