Nvidia’s (NVDA) market superiority is now under threat as Google (GOOGL) moves to ink a chip deal with one of the largest AI spenders on the planet.
Meta is in discussions to spend billions of dollars on Google’s tensor processing units (TPUs), a move that would give Google a major foothold in the accelerator market and provide Meta with an alternative to Nvidia’s high-demand chips, reports Bloomberg.
The talks come as Alphabet’s valuation approaches $4 trillion and industry momentum for TPUs begins to accelerate. Meta’s interest centers on deploying the chips in its data centers in 2027 while potentially renting Google TPUs through Google Cloud as early as next year.
The talks follow Google’s recent agreement to supply up to one million chips to Anthropic, raising the stakes in the competition to provide compute for frontier models.
Says a Google spokesperson,
“Google Cloud is experiencing accelerating demand for both our custom TPUs and Nvidia’s GPUs; we are committed to supporting both, as we have for years.”
Spokespersons for Meta declined to comment.
Google’s unique AI strategy has been noticed by some of the largest hedge funds in the world. Cathie Wood’s ARK Invest took note of Google’s full-stack AI approach, as it is the only hyperscaler with a complete silicon-to-software stack. The tech giant controls its own frontier models, agentic layer, training infrastructure, compiler and software stack, data centers, accelerators and cloud distribution.
Other players in the AI race rely on a mix of Nvidia, AMD, or outsourced training.
A Meta deal would be the first proof that another major hyperscaler is willing to use Google’s silicon to run its own AI workloads.
News of the deal sent GOOGL to a new all-time high of $328.83, with a market cap of around $3.90 trillion. Meanwhile, Nvidia continues to slump, dropping to $177.82, a 2.59% decline as of Tuesday’s close.
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