Overview
- Meta is reportedly in talks to rent Google Cloud TPU capacity as soon as next year and to deploy or buy TPUs beginning around 2027, though no deal has been confirmed.
- Shares moved on the reports, with Nvidia down nearly 3%, AMD off about 4%, and Alphabet up roughly 2% to a fresh high.
- Nvidia posted on X that it is a generation ahead, said its platform runs every AI model everywhere, and argued its GPUs offer greater performance, versatility, and fungibility than ASICs such as TPUs.
- Google has been pitching TPUs beyond its own data centers and says demand is accelerating for both its custom TPUs and Nvidia GPUs, with recent deals including Anthropic’s expansion to use up to one million TPUs.
- Some Google Cloud executives reportedly see a path to capturing about 10% of Nvidia’s annual revenue via external TPU sales, while Nvidia also circulated a memo rebutting Michael Burry’s criticisms of its accounting and AI cycle exposure.