Overview
- The Information reported that Meta is in talks to rent Google’s tensor processing units as soon as next year and to deploy them more broadly by 2027, a shift from Google’s past practice of keeping TPUs inside its own data centers.
- Alphabet shares hit fresh highs while Nvidia fell roughly 3%–5% and AMD also declined, as traders priced in the prospect of diversified AI chip supply; Broadcom, which helps design TPUs, gained.
- Google is also pitching TPUs to other customers, and the company has told partners the effort could capture as much as 10% of Nvidia’s annual revenue, according to the report.
- Alphabet’s advance has been supported by strong reception to Google’s Gemini 3 model, which market coverage says has drawn overwhelmingly positive feedback.
- Nvidia remains the leading AI chip supplier and just posted about $57 billion in quarterly sales, but prominent investors have trimmed or hedged AI exposure as debate grows over whether the pullback is a healthy recalibration or a warning on valuations and financing risks.