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Meta Is in Talks to Use Google’s AI Chips, Rattling Nvidia

The reported negotiations would open Google’s TPUs to outside buyers, reshaping AI compute procurement if a deal materializes.

Overview

  • Reports citing The Information say Meta is discussing access to Google’s tensor processing units, including potential chip rentals from Google Cloud as early as next year.
  • Meta is also weighing a multibillion-dollar investment to run Google chips in its own data centers starting around 2027, according to the same reports.
  • Nvidia shares fell roughly 6.5–7%, erasing about $150 billion in market value, while Alphabet gained more than 4% and Broadcom rose.
  • The discussions are described as developing and unconfirmed, with no public details finalized on scope, pricing, or timelines.
  • Commercializing TPUs would mark a shift from Google’s internal-only deployments and could chip away at Nvidia’s dominance, with some analyses pointing to a potential take of up to 10% of Nvidia’s annual revenue even after Nvidia’s standout quarter.