Overview
- Meta is in talks to buy Google’s custom TPU chips for its data centers from 2027 and may rent capacity sooner, according to The Information, a report that sent Nvidia shares down roughly 5%–7% and boosted Alphabet.
- Alphabet’s market value climbed to about $3.86 trillion, surpassing Microsoft and trailing only Apple and Nvidia, as investors warmed to TPU momentum and recent Gemini 3 updates.
- Google says Cloud will support both its TPUs and Nvidia GPUs, while its latest TPU generation (Ironwood) targets price, performance and efficiency advantages for large AI workloads.
- Nvidia remains highly profitable after a blockbuster quarter driven by data‑center AI chips, yet its stock is under pressure as customers explore alternatives that could dilute its pricing power.
- Credit strains are building around AI infrastructure financing, with roughly $90 billion in recent Big Tech debt and over $7 billion in speculative data‑center bonds trading weaker, while critics like Michael Burry question accounting practices and depreciation assumptions.