Meta Eyes Google AI Chips: Alphabet Rises, Nvidia Falls

Alphabet shares climbed and Nvidia stock dropped as Meta considers using Google’s TPUs for AI, signaling a shift in the competitive landscape of the AI chip market and increased diversification of suppliers.

Alphabet shares rose while Nvidia stock declined following reports that Meta is in advanced talks to deploy Google’s tensor processing units (TPUs) in its data centers, potentially starting in 2027, with cloud rentals as early as next year. The discussions signal Meta’s intent to diversify its AI chip suppliers and reduce reliance on Nvidia’s GPUs, which have long dominated the AI hardware market. Google’s TPUs, designed specifically for machine learning tasks, are gaining traction as credible alternatives, with recent major deals including Anthropic’s purchase of up to 1 million units. Meta’s significant AI infrastructure spending, projected at $70-72 billion this year, makes its chip choices influential across the industry. Analysts estimate Meta could spend $40-50 billion on inferencing chip capacity in 2026. The potential partnership would expand Google’s AI hardware reach and intensify competition in the sector, offering tech companies more options for their AI infrastructure needs.