Google and Meta team up to challenge Nvidia dominance in AI chip market with TorchTPU project

Google Enlists Meta to Cut Nvidia Reliance - Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META)

Alphabet Inc.'s (NASDAQ:GOOGL) Google is stepping up its push to reshape the competitive dynamics of the AI chip market as demand for large-scale AI computing continues to surge. Google is teaming up more closely with Meta Platforms Inc (NASDAQ:META) as it looks to rely less on Nvidia Corp (NASDAQ:NVDA) for powering artificial intelligence. The company is working on software changes that make its own chips easier to use with PyTorch, the tool most AI developers already rely on, Reuters reported on Wednesday. Meta plays a central role in this effort. As a major backer of the AI tools developers use, Meta is collaborating with Google and gaining greater access to Google's chip infrastructure. Google plans to use this setup both for its own AI services and for cloud customers. Reducing Reliance On Nvidia Infrastructure The move adds pressure to Nvidia as competition in AI hardware intensifies. Nvidia recently said its widely discussed $100 billion potential deal with OpenAI remains nonbinding and emphasized that its sales outlook does not depend on that agreement. The company continues to point to the strength of its full AI stack as its core advantage. Nvidia became the first company to top the $4.5 trillion market cap in October 2025, topping the likes of Apple Inc. (NASDAQ:AAPL), Google, and Microsoft Corp (NASDAQ:MSFT). Meanwhile, Jim Cramer said Broadcom Inc (NASDAQ:AVGO) stands to benefit most from any potential deal between Alphabet and Meta, pointing to CEO Hock Tan's influence as a key advantage. Cramer also highlighted Tan's role in Broadcom's growing challenge to Nvidia in AI hardware. Under Tan, Broadcom has expanded its presence in custom AI chips and high-end networking. NVDA Price Action: Nvidia shares were up 1.21% at $173.00 during premarket trading on Wednesday, according to Benzinga Pro data. Read Next: Three-Fourths Of Taiwan Semiconductor's Sales Now Come From America Image by Edward C. Baig via Imagn GOOGLAlphabet Inc$299.660.99%OverviewMETAMeta Platforms Inc$653.770.66%AAPLApple Inc$271.44-0.15%AVGOBroadcom Inc$330.201.28%MSFTMicrosoft Corp$479.300.67%NVDANVIDIA Corp$173.251.35%Market News and Data brought to you by Benzinga APIs

Google and Meta join forces to weaken Nvidia's dominance in AI

Alphabet, Google's parent company, is teaming up with Meta to develop "TorchTPU," a project aimed at making Google's TPU chips fully compatible with the PyTorch framework, widely used in artificial intelligence development. This strategic initiative seeks to reduce the sector's reliance on Nvidia, which currently dominates the AI processor market thanks to its CUDA software ecosystem. Following the announcement, Nvidia's shares fell 2% during trading. The project could profoundly reshape the technological balance between hardware and software across the industry. Until now, adoption of TPUs by external customers has been limited due to their weak compatibility with PyTorch, forcing developers to heavily adapt their code. TorchTPU aims to remove this barrier by offering native integration, which would enable Google to make its chips more attractive and accessible. The group is also considering partially open-sourcing the code to accelerate adoption by the community.