By Laura Bratton
Publication Date: 2025-11-25 14:37:00
Nvidia (NVDA) stock fell as much as 6.5% in early trading on Tuesday after a report that the AI chipmaker could soon see greater competition from its own customer, Google (GOOG, GOOGL).
The Information reported on Monday that Google is in talks with Meta (META) for the Facebook parent to spend billions of dollars to use its AI chips in data centers in 2027.
This would represent a big change in Google’s current chip business, which sees the tech giant rent access to its chips, called tensor processing units (TPUs), to AI developers through Google Cloud. This means the chips are confined to Google’s own data centers, not sold externally as suggested by The Information’s report.
The Information also said Google is pitching its other cloud customers to sell them TPUs, in a move the company claims could grab as much as 10% of Nvidia’s annual revenue. Shares of Nvidia rival Advanced Micro Devices (AMD) also fell more than 8% following the report.
