Meta Considers Multi-Billion Dollar Google TPU Deal, Challenging Nvidia's AI Chip Dominance

Billion-dollar AI chip deal between Google and Meta could be on the cards -- would involve renting Google Cloud TPUs next year, outright purchases in 2027

The deal is said to be worth billions to both firms, and has already helped boost Google's parent company to a near $4 trillion valuation Meta may be on the cusp of spending billions on Google AI chips to power its future developments, as the social-media giant is reportedly in talks to both buy and rent Google compute power for its future AI endeavours, as reported by The Information, via Reuters. The ongoing negotiations reportedly involve Meta renting Google Cloud Tensor Processing Units (TPU) in 2026, before purchasing them outright in 2027. This news shows continuing collaboration between the companies, despite a recent pause on their undersea cable projects. To date, Google has mostly leveraged its TPUs for its internal efforts, so this move, if it comes to fruition, would be a change of tactic that could help it capture a sizeable portion of the AI chip business. Considering that few, if any, companies have figured out how to turn a profit from developing AI just yet, Google may be looking to get in on Nvidia's act. The long-time GPU maker has made untold billions since the start of the AI craze, propelling it to become the world's most valuable company within a short timeframe. Indeed, Reuters reports some Google Cloud executives believe that the shifting strategy would give it the chance to capture as much as a 10% slice of Nvidia's data center revenue. Considering Nvidia made over $51 billion from data centers in Q2 2025 alone, Google cornering that much of Nvidia's revenue would be worth 10s of billions of dollars. Markets reacted to the rumors of this deal, sending Meta and Google stock upwards. Alphabet rose several percent in pre-market trading, and Reuters has it on track to become the next $4 trillion company potentially as soon as later today. Meta stock prices are up, too, but Nvidia took a 3% hit. Even if Google does clinch this deal and secures a huge order and long-term revenue stream for its TPUs outside of internal use, it's still going to be swallowed up by the AI industry as a whole. There isn't enough compute power, fabrication capacity, or supply-chain logistics to provide the enormous uptick in demand for AI data center buildouts that have been ongoing this year. Memory prices are skyrocketing, GPU prices are expected to jump up next year, and just about everything electronic could be more expensive this time next year. That's if the bubble doesn't burst, of course. Even 2026 feels a long way off when it comes to this ever-changing industry, but 2027 is a lifetime away. Who knows what the state of AI hardware will be like then, and there's no telling whether Google's TPUs will have any longer shelf life than Nvidia's top GPUs. Especially with an aggressive annual release schedule.

Nvidia shares fall 3% on report Meta will use Google AI chips

On Monday, The Information reported that Meta is considering using Google's tensor processing units (TPUs) in its data centers in 2027. Meta may also rent TPUs from Google's cloud unit next year, the publication reported. Google launched its first-generation TPU in 2018 and it was initially designed for its own internal use for its cloud computing business. Since then, Google has launched more advanced versions of its chip that are designed to handle artificial intelligence workloads. TPUs are a customized chip and experts say this gives Google an advantage over rivals as it can offer customers a highly efficient product for AI. If Meta uses the TPUs, it would be big win for Google and potential validation of the technology. Nvidia remains the market leader with its graphics processing units (GPUs) that have become the main piece of hardware underpinning the huge AI infrastructure buildout. While Nvidia's dominance is unlikely to be dislodged in the near term, Google's TPUs add further competition into the AI semiconductor market. Companies building AI infrastructure have been searching for a more diversified supply of chips to reduce reliance on Nvidia. Meta is among the biggest spenders on AI infrastructure, with the company projecting its capital expenditure to stand between $70 billion to $72 billion this year.

Nvidia shares dip as AI accelerator race shifts interest to Google

A report that Meta may shift billions in AI spending towards Google's custom chips sent Nvidia shares lower, signalling early signs of a potential shake-up in the company's near-monopoly of the AI hardware market. Nvidia shares dipped in pre-market trading on the NASDAQ on Tuesday after widespread reports that Meta, the company behind Facebook and Instagram, is in talks to spend billions on Google's in-house AI chips, known as tensor processing units (TPUs). Nvidia fell almost 4% to around $175.44 (€152.20), down from its earlier-year highs of up to $212 (€183.76) in late October. Trading was heavy in the after-hours session, with more than 250 million shares changing hands. Nvidia spent most of this year being heralded as the winner of the AI race because its chips, especially the H100 GPU, became the essential hardware powering nearly every major AI model. That gave the company a near-monopoly on the market while also turning it into one of the world's most valuable firms. But Nvidia's chips are general-purpose GPUs, originally built for graphics and then later repurposed for AI, while Google's TPUs are specialised processors designed from the get-go almost exclusively for machine-learning tasks, making them faster and more efficient for certain types of AI work. The market movement could suggest that while Nvidia's experience in chipmaking granted them a lion's share of initial investor interest, now the world's largest buyers of artificial intelligence hardware are weighing alternatives that are specifically tailored to AI. Such a development could have long-term implications for the trillion-dollar chipmaker. Nvidia's chips are famous for their exceptional performance in terms of computer graphics rendering, gaming, video processing and 3D modelling. According to a report from business outlet The Information, Meta is considering deploying Google's TPUs in its data centres from 2027 and may also rent TPU capacity through Google Cloud as early as next year. Google's TPUs are not general-purpose processors and underperform on tasks outside of machine-learning or AI-related tasks, meaning they can't replace CPUs or GPUs for ordinary computing jobs. The share movements therefore suggest that the chips that have long powered our laptops and desktops have become less of a priority for investors. The end of a monopoly? At the heart of the share price drop is the prospect of a challenge to Nvidia's near-monopoly on AI accelerators. Market analysts estimate Nvidia currently holds between 80% and 90% of the market -- some even going up to 95% -- with its H100 and H200 GPUs forming the backbone of global AI training infrastructure. Meta alone said it planned to acquire more than 350,000 H100 chips in a company report last year -- an enormous commitment that reflects both scale and reliance on a single supplier. It seems that Nvidia's GPU's aren't going to be cast aside entirely, but everything boils down to scale in the AI race. The price and performance of Nvidia's chips are not as appealing to hyperscalers -- companies who are seeking to secure a vast, steady supply of chips as they expand into AI. If Nvidia fails produce enough GPUs to meet global demand, hyperscalers want to avoid reliance on a single supplier. TPUs give big buyers a second source of chips, reducing supply risk but also giving them pricing leverage. Even a modest rebalancing of demand from a buyer of Meta's size could therefore shift sentiment across the sector. For Google, the market movements support its long-term push to turn TPUs into a commercial product. Originally built more than ten years ago as application-specific integrated circuits (ASICs) for machine-learning tasks and used only within Google, TPUs are now being sold externally. The deal with Anthropic to provide up to one million TPUs marks a major step and makes them a credible alternative to Nvidia's GPUs for both the training and application of AI models.

Meta Considers Google TPUs as an Alternative to NVIDIA Chips | AIM

Meta is considering deploying Google's Tensor Processing Units (TPUs) in its data centres from 2027, a move that could challenge NVIDIA's longstanding dominance in AI hardware, according to The Information. Meta is reportedly in talks to spend billions on TPUs, exploring both long-term deployment and the possibility of renting Google's chips through Google Cloud as early as next year, reported The Information. The discussions come as major AI developers look to diversify suppliers amid soaring demand and concerns over dependence on NVIDIA GPUs, which are the current industry standard for training and running large AI models. Interestingly, Google's latest model Gemini 3, was also trained on TPUs. Alphabet shares rose as much as 2.7% in late trading following the report, while NVIDIA slipped by a similar margin, reflecting investor expectations of a potential shift in market dynamics. If finalised, the Meta-Google arrangement would bolster TPUs as a credible alternative in high-performance AI computing. Google has already signed a separate agreement to provide up to one million TPUs to Anthropic. With Meta's capital expenditure projected to exceed $100 billion in 2026, Bloomberg analysts estimate the company could spend $40-$50 billion next year on inferencing-chip capacity alone, potentially accelerating demand for Google Cloud services. TPUs, designed more than a decade ago specifically for AI workloads, have gained traction as companies evaluate customised, power-efficient alternatives to traditional GPUs. While NVIDIA still commands the vast majority of the AI chip market and AMD remains a distant second, TPUs are emerging as a strong contender, especially as companies seek to mitigate reliance on a single dominant supplier.

Google's reported chip deal with Meta shakes up the AI market, pressuring Nvidia stock

Google is reportedly in talks to sell billions of dollars' worth of its custom artificial intelligence chips to Meta Platforms, a potential deal that sent ripples through the stock market. News of the talks caused the Nvidia stock price to dip while boosting the Google stock price, as investors began to reconsider the competitive balance in the high-stakes market for AI computing power. Meta is considering using Google's Tensor Processing Units (TPUs) in its own data centers starting in 2027. This development is significant because it suggests a major tech company is looking for a serious alternative to Nvidia, and it could have a long-term impact on the Meta stock price as the company diversifies its suppliers for critical components. For years, Nvidia has been the undisputed leader in chips designed for artificial intelligence. Its powerful processors have been essential for nearly every major company, from Meta to OpenAI, for developing and running complex AI systems. This near-monopoly has been a primary reason for the incredible growth in the Nvidia stock price. However, Google's potential deal with Meta signals that its custom-built TPUs are emerging as a credible and powerful alternative. This isn't the first time Google has attracted a major AI player; the company previously secured a deal to supply up to 1 million of its TPUs to Anthropic. A partnership with a giant like Meta, however, would be a much bigger validation. The market reacted swiftly to the news. The Nvidia stock price fell by as much as 3% in premarket trading, a clear sign of investor concern. In contrast, shares of Google's parent company, Alphabet, gained 2.4%, building on recent optimism around its latest Gemini 3 Pro AI model. For Google, this is about more than just a single sale; it's a chance to finally monetize a decade-long investment in custom chip design. Successfully supplying a customer the size of Meta would not only bring in billions in revenue but also prove that its TPUs can compete with Nvidia's best on both performance and efficiency. This potential for a huge new revenue stream is a significant factor supporting the recent rise in the Google stock price. For Meta, the deal is a smart and strategic move. The company plans to spend at least $100 billion on its data centers in 2026, and relying almost entirely on a single supplier for the most critical hardware creates a major business risk. By bringing in Google's TPUs, Meta can reduce this risk, increase its negotiating power, and potentially lower its long-term costs. This kind of prudent supply chain management could positively influence the long-term outlook for the Meta stock price. For some time, companies around the world have been worried about their overreliance on Nvidia. While Nvidia's processors were originally designed for graphics, they turned out to be perfect for training AI systems. Google's TPUs, on the other hand, were designed from the very beginning with only artificial intelligence in mind. The potential deal between Google and Meta is a clear sign that the market for AI chips is becoming more competitive. While the Nvidia stock price has long reflected a dominant market position, the emergence of powerful alternatives means the race is far from over. Investors will be watching closely, as the battle to supply the computing power for the next generation of technology will have a lasting impact on the stock prices of all the major companies involved.

Google is in talks to sell custom AI chips to Meta

Google is reportedly negotiating a multibillion-dollar agreement to supply its custom AI chips to Meta Platforms, a move that would mark a significant strategic shift for Google as it seeks to challenge Nvidia's dominance in the AI infrastructure market. According to a report from The Information on Monday evening, the proposed deal would see Meta deploying Google's Tensor Processing Units (TPUs) within its own data centers starting in 2027. Additionally, Meta plans to begin renting TPU capacity directly from Google Cloud as early as next year. This potential partnership represents a departure from Google's traditional business model, which has historically restricted access to its TPUs exclusively through cloud rentals on the Google Cloud Platform rather than selling the hardware for outside use. Following the report, Alphabet shares rose between 2.1% and 2.5% in after-hours trading, while Nvidia stock dipped 1.8%. The news arrived shortly after Alphabet stock had already surged more than 6% during the regular session, buoyed by the positive reception of its recently launched Gemini 3 AI model. Google is actively pitching its TPU technology to a broader range of clients beyond Meta, including high-frequency trading firms and major financial institutions. The company is emphasizing that on-premises deployment of these chips can help organizations meet strict security and compliance requirements. Currently, Meta relies heavily on Nvidia GPUs to power the AI infrastructure serving its more than 3 billion daily users. Google Cloud executives estimate that expanding TPU adoption could allow the company to capture up to 10% of Nvidia's annual revenue, translating to billions in potential earnings amidst ongoing global supply constraints for AI computing power. The deal would serve as a major validation of Google's decade-long investment in custom silicon. The company recently introduced Ironwood, its seventh-generation TPU, which claims to offer four times the performance of its predecessor and is nearly 30 times more energy-efficient than the first Cloud TPU released in 2018. Competition in the sector is intensifying, with AI startup Anthropic committing in October to access up to one million Google TPUs in a deal valued at tens of billions of dollars, citing price-performance and efficiency as decisive factors. Google continues to partner with Broadcom for the design and manufacturing of these chips.

Meta in talks to spend billions on Google's chips: Report

Meta Platforms is in talks with Google to spend billions of dollars on the Alphabet -owned company's chips for use in its data centers starting from 2027. The talks also involve Meta renting chips from Google Cloud as early as next year and are part of Google's broader push to get customers to adopt its tensor processing units (TPUs) - used for AI workloads - in their own data centers, the report said. Meta Platforms is in talks with Google to spend billions of dollars on the Alphabet -owned company's chips for use in its data centers starting from 2027, The Information reported, a move that would cast Google as a serious rival to semiconductor giant Nvidia . The talks also involve Meta renting chips from Google Cloud as early as next year and are part of Google's broader push to get customers to adopt its tensor processing units (TPUs) - used for AI workloads - in their own data centers, the report said, citing people involved in the talks. The move would mark a departure from Google's current strategy of using TPUs only in its own data centers and could sharply expand the market for its chips, putting the company in direct competition for the hundreds of billions being spent on data-center processors to power AI services. Some Google Cloud executives have suggested the strategy could help it capture as much as 10% of Nvidia's annual revenue, a slice worth billions of dollars, according to the report. Alphabet shares rise, Nvidia declines Alphabet shares rose more than 4% in premarket trading on Tuesday, putting it on course to hit a historic $4 trillion valuation if the gains hold. Broadcom, which helps Google make its AI chips, gained 2%, while Nvidia fell 3.2%. Clinching a chip deal with Meta, one of the biggest Nvidia customers with up to $72 billion planned in spending this year, would mark a major coup for Google -- already one of the biggest winners of the generative AI boom thanks to a surge in demand for its cloud services from businesses adopting the technology. Alphabet, Meta and Nvidia did not immediately respond to requests for comment. Reuters could not verify the report. Demand has surged for custom chips such as TPUs in recent years as businesses look for alternatives to Nvidia's pricey and supply-constrained graphics processors. Anthropic said last month it was expanding its Google deal to use up to one million of the tech giant's AI chips, worth tens of billions of dollars. Google has built momentum in recent months by drawing Warren Buffett's Berkshire Hathaway as an investor, turning its once-marginal cloud unit into a growth engine and earning strong early reviews for its latest Gemini 3 model. Renting Nvidia chips to customers is a big revenue source for its cloud unit. Taking on Nvidia's dominance would require Google to overcome nearly two decades of proprietary Nvidia code that has made the company's ecosystem hard to dislodge. More than 4 million developers worldwide rely on Nvidia's CUDA software platform to build AI and other applications.

Nvidia share price: NVDA stock crash in pre-market as Google's big move may lead to 'Godzilla vs. Kong' moment in AI industry

Nvidia stock today: Nvidia shares fell as Meta Platforms considers using Google's AI chips. Meta may rent these chips from Google Cloud next year. This move signals a significant shift in the AI chip market. Google's Tensor Processing Units are gaining traction. Meta plans substantial AI spending, potentially benefiting Google Cloud. This development impacts major tech players and their suppliers. Nvidia stock today: Nvidia shares slipped sharply on Tuesday after a report suggested that Meta Platforms is in talks to spend billions of dollars on Google's AI chips, signalling a potential showdown between two of the industry's most powerful forces, a "Godzilla vs. Kong" moment for the AI chip world. According to The Information, Meta is discussing plans to use Google's tensor processing units (TPUs) in its data centers starting in 2027. The company may also rent the chips from Google's cloud division as early as next year. The talks underscore Google's accelerating push to challenge Nvidia's dominance in AI accelerators, a market where Nvidia's GPUs have long been the undisputed gold standard. The report sent Nvidia shares down more than 3% in pre-market trading, while Alphabet surged more than 2%, extending its recent rally driven by excitement around the latest version of its Gemini AI model. ALSO READ: Mortgage rates today, Nov 25: 30-year falls to 6.24%, 15-year drops to 5.37% & refinance rates dipped too - key takeaways for buyers and homeowners For Google, securing Meta, one of the world's biggest spenders on AI and data infrastructure, would represent a major victory. The tech giant has been steadily advancing its TPU strategy, recently signing a deal to supply up to 1 million chips to Anthropic, a move analysts have described as a major validation of Google's hardware ambitions. Seaport analyst Jay Goldberg called the Anthropic deal a "really powerful validation" for TPUs, saying, "A lot of people were already thinking about it, and a lot more people are probably thinking about it now," as quoted by Bloomberg. Bloomberg Intelligence analysts Mandeep Singh and Robert Biggar noted that Meta's enormous capex plans, at least $100 billion in 2026, imply spending $40-50 billion on inferencing-chip capacity as early as next year, as per the report. That could accelerate chip consumption and backlog growth for Google Cloud as enterprises increasingly seek access to TPUs and Gemini-based AI services. ALSO READ : US stock market bubble alert: Why permabear Albert Edwards says tech & AI rally could end in tears Shares of Alphabet-linked suppliers jumped across Asia following the report. South Korea's IsuPetasys surged 18% to a record, while Taiwan's MediaTek rose nearly 5%. Google's TPUs, first developed more than a decade ago for AI workloads, have gained traction as companies look for alternatives amid global concerns about overreliance on Nvidia. While Nvidia's GPUs were originally designed for graphics rendering, their ability to process massive datasets made them the default choice for training modern AI models. TPUs, by contrast, are application-specific chips built expressly for AI and machine learning tasks, and their tight integration with Google's Gemini and DeepMind teams has helped refine the technology further. Why did Nvidia stock drop today? Shares fell over 3% after reports that Meta may use Google's AI chips. How much does Meta plan to spend on AI next year? Meta is expected to spend at least $100 billion in 2026, with $40-50 billion on inferencing-chip capacity. (You can now subscribe to our Economic Times WhatsApp channel)

Google touts its TPUs as alternative to Nvidia AI chips; Meta expresses interest - The Economic Times

Google is intensifying its effort to challenge Nvidia in the AI chip market, according to a report from The Information on Monday. Historically, Google has used its custom tensor processing units (TPUs) inhouse to run its own cloud infrastructure, offering them to customers only through Google Cloud for large AI workloads. The report says Google is now proposing a significant shift, allowing customers to install TPUs within their own data centres rather than relying solely on its facilities. And social media giant Meta is emerging as a major potential buyer. Meta Platforms Inc., the owner of Facebook and Instagram, is reportedly in talks to spend billions of dollars to deploy Google's TPUs in its data centres beginning 2027. Meta is also said to be considering renting TPU capacity from Google Cloud as early as next year. Currently, Meta's AI systems primarily run on Nvidia GPUs. Notably, Meta is invested in the race to superintelligence, spending billions on acqui-hiring and talent acquisitions through other channels. If finalised, a deal with Meta would mark a major milestone for Google's hardware strategy. The company has been pitching TPUs to organisations with strict data security and regulatory requirements, such as large financial firms and high-frequency trading companies. The tech giant has been marketing tighter control over sensitive information with on-premises TPU deployment to potential clients. Google Cloud executives have indicated internally that broader TPU adoption could enable Google to capture a meaningful share of the AI chip market from Nvidia. According to the report, they believe the effort could help Google target up to 10% of Nvidia's annual revenue, representing several billion dollars. The push comes as demand for AI computing capacity continues to surge and Nvidia remains the dominant supplier in the sector. By offering TPUs both through the cloud and directly inside customer facilities, Google is signalling a more aggressive approach in the expanding competition for AI infrastructure.

Nvidia Faces Fresh Competitive Risk as Google TPUs Gain Traction | Investing.com UK

NVIDIA Corporation (NASDAQ:NVDA) shares fell sharply in premarket trading on Tuesday, November 25, 2025, following reports that Meta Platforms (NASDAQ:META) is in discussions to purchase billions of dollars worth of Google's tensor processing units (TPUs). The news suggests Google is making significant progress in challenging NVIDIA's dominant position in the AI chip market. Trading at $175.90 in premarket, down $6.65 or 3.64% from the previous close of $182.55, NVIDIA's stock decline reflects investor concerns about potential competition from Google's specialized AI accelerators. According to The Information, Meta Platforms is in talks to deploy Google's tensor processing units in its data centers starting in 2027, with the possibility of renting TPUs from Google's cloud division as early as next year. This would represent a significant validation of Google's TPU technology, which has been designed specifically for AI workloads since its first-generation launch in 2018. An agreement with Meta, one of the world's largest spenders on AI infrastructure with projected capital expenditure of $70-72 billion this year, would establish TPUs as a credible alternative to NVIDIA's market-leading GPUs. The potential deal highlights the broader industry trend of companies seeking to diversify their chip supply and reduce dependence on NVIDIA, whose graphics processing units have become the gold standard for AI development. Google's TPUs offer customization advantages as application-specific integrated circuits designed for discrete purposes, contrasting with NVIDIA's GPUs that were originally created for graphics rendering but proved well-suited for AI tasks. Bloomberg Intelligence analysts estimate Meta could spend $40-50 billion on inferencing chip capacity in 2026 alone, suggesting substantial opportunity for alternative chip providers. While NVIDIA maintains its dominant market position with a $4.437 trillion market cap and impressive performance metrics including a PE ratio of 45.30 and year-to-date returns of approximately 36%, the Google-Meta news triggered immediate market reactions. Alphabet shares surged over 6% on Monday and climbed an additional 2.4% in premarket trading Tuesday, while Broadcom, which helps Google design its TPUs, jumped 11% Monday and rose another 2% in premarket. The stock movements reflect investor recognition that Google's progress could reshape competitive dynamics in the AI semiconductor market. Despite the competitive threat, NVIDIA's fundamentals remain strong with Q3 fiscal 2026 revenue of $57.01 billion and earnings of $31.77 billion, demonstrating the company's continued ability to capitalize on AI infrastructure buildout. Analyst price targets range from $140 to $352, with an average of $248.42, suggesting confidence in NVIDIA's long-term prospects. However, the emergence of viable alternatives like Google's TPUs introduces new uncertainty around NVIDIA's ability to maintain its current market dominance, particularly as major customers seek supply diversification and cost optimization in their multi-billion dollar AI investments. *** Looking to start your trading day ahead of the curve?

Nvidia set to lose $180 billion in market value today as Meta weighs Google chips By Investing.com

Investing.com -- Meta Platforms Inc (NASDAQ:META) is evaluating whether to use Google-designed chips in its data centers, a move that could reshape the competitive landscape in AI hardware, according to The Information. The report said Meta is considering deploying Google's tensor processing units, or TPUs, in its facilities starting in 2027, and may also rent TPUs through Google Cloud as early as next year. In response to this news, NVIDIA (NASDAQ:NVDA) shares fell 4.1% in premarket U.S. trade. This way, Nvidia is on track to shed roughly $180 billion in market value. Get more exclusive insights by leading Wall Street strategists by upgrading to InvestingPro - get 55% off today On the other hand, Google-owner Alphabet (NASDAQ:GOOGL) stock rose 4%, on track to hit the $4 trillion valuation target. Google introduced its first TPU in 2018 for internal cloud workloads and has since rolled out several newer generations tailored for artificial intelligence. The chips are customized to handle the compute-heavy demands of modern AI models, and experts say this specialization gives Google an efficiency edge over rivals. A deal with Meta would mark a significant endorsement of Google's technology and a rare instance of a major AI platform leaning on an external chip supplier outside of Nvidia. Broadcom shares also moved higher on the report, reflecting its exposure to the broader AI infrastructure build-out. Broadcom (NASDAQ:AVGO) rose 11.10% yesterday, and is up a further 2.5% today.

Meta in talks to spend billions on Google's chips, The Information reports

(Reuters) -Facebook parent Meta is in discussions with Alphabet's Google to spend billions on using Google's AI chips in its data centers from 2027 and to rent chips from Google Cloud by next year, The Information reported on Monday. Google has pitched tensor processing units, or TPUs, as a cheaper alternative to Nvidia chips, useful for firms seeking higher security standards, the report said, adding that Google has discussed aiming for 10% of Nvidia's revenue with its TPU chip business. The TPUs, available for rent on Google Cloud, serve as an alternative to supply-constrained Nvidia chips. Meta, Google and Nvidia did not immediately respond to requests for comment. Reuters could not immediately verify the report. Meta announced earlier this year it will invest $600 billion in U.S. infrastructure and jobs over the next three years, including AI data centers. The company has been one of Nvidia's biggest customers since 2022, amassing an arsenal of graphics processing units to train its models and also serve the more than 3 billion people who use its apps each day. (Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Mrigank Dhaniwala)

Meta reportedly in talks to buy billions-worth of Google chips By Investing.com

Investing.com -- Meta Platforms is discussing a potential multi-billion dollar deal with Google to purchase chips for its data centers beginning in 2027, according to a Tuesday report by The Information. The talks also include the possibility of Meta renting chips from Google Cloud as early as next year, according to people involved in the discussions. This arrangement is part of Google's larger initiative to encourage customers to adopt its tensor processing units (TPUs), which are specialized for AI workloads, in their own data centers. Can Alphabet shares continue higher in 2026? See what Wall Street analysts think by upgrading to InvestingPro - get 55% off today If finalized, the deal would represent a strategic shift for Google, which has historically used its TPUs exclusively in its own data centers. This expansion could significantly broaden the market for Google's chips and position the company as a direct competitor to Nvidia in the lucrative data-center processor market that powers AI services. Some Google Cloud executives believe this strategy could help the company capture as much as 10% of Nvidia's annual revenue, which would translate to billions of dollars, the report noted.

Meta, Google discuss TPU deal as Google targets Nvidia's lead, Information says By Investing.com

Investing.com -- Google is sharply escalating its bid to rival Nvidia in the AI chip race, and Meta is emerging as a potential multibillion-dollar customer, The Information reported Monday evening. For years, Google has limited its custom tensor processing units (TPUs) to its own cloud data centers, renting them out to companies running large-scale AI workloads. But according to The Information, Google is now pitching the chips for deployment inside customers' own data centers, marking a major shift in strategy. One of those customers is Meta Platforms Inc (NASDAQ:META). The parent of Facebook and Instagram is reportedly in discussions to spend billions of dollars to integrate Google's TPUs into its data centers starting in 2027, while also planning to rent TPU capacity from Google Cloud as early as next year. Meta currently relies primarily on Nvidia GPUs for its AI infrastructure. Alphabet Inc (NASDAQ:GOOGL) stock rose 2.1% in after-hours trading following the announcement, while NVIDIA Corporation (NASDAQ:NVDA) stock slumped 1.8% If the deal proceeds, it would be a significant validation for Google's hardware ambitions. The company has told prospective clients -- ranging from high-frequency trading firms to large financial institutions, that installing TPUs on-premises can help them meet stringent security and compliance requirements for sensitive data, The Information reports. The stakes are enormous. Executives inside Google Cloud have suggested that expanding TPU adoption could help the company capture up to 10% of Nvidia's annual revenue, a haul worth billions. With demand for AI compute exploding and Nvidia continuing to dominate the supply chain, Google's play to put TPUs directly into customers' facilities signals a more aggressive phase in the AI chip wars.