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Investing.com -- Meta Platforms Inc (NASDAQ:META) is evaluating whether to use Google-designed chips in its data centers, a move that could reshape the competitive landscape in AI hardware, according to The Information.
The report said Meta is considering deploying Google’s tensor processing units, or TPUs, in its facilities starting in 2027, and may also rent TPUs through Google Cloud as early as next year.
In response to this news, NVIDIA (NASDAQ:NVDA) shares fell 4.1% in premarket U.S. trade. This way, Nvidia is on track to shed roughly $180 billion in market value.
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On the other hand, Google-owner Alphabet (NASDAQ:GOOGL) stock rose 4%, on track to hit the $4 trillion valuation target.
Google introduced its first TPU in 2018 for internal cloud workloads and has since rolled out several newer generations tailored for artificial intelligence.
The chips are customized to handle the compute-heavy demands of modern AI models, and experts say this specialization gives Google an efficiency edge over rivals.
A deal with Meta would mark a significant endorsement of Google’s technology and a rare instance of a major AI platform leaning on an external chip supplier outside of Nvidia.
Broadcom shares also moved higher on the report, reflecting its exposure to the broader AI infrastructure build-out. Broadcom (NASDAQ:AVGO) rose 11.10% yesterday, and is up a further 2.5% today.