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Meta Using Google TPUs 2027: Nvidia shares slipped on Tuesday after a report suggested Meta may turn to Google’s in-house chip designs for future projects.
The report, released by The Information, indicated that Meta is exploring alternatives that could reduce its dependence on Nvidia’s hardware.
Nvidia's stock was down roughly 4% in premarket trading. Alphabet, the parent company of Google, traded 4.2% higher after extending the momentum of a strong 6% rally on Monday.
Meta is weighing a move to adopt Google’s tensor processing units in its data centers starting in 2027, according to a report published Monday by The Information.
The report also indicated that Meta could begin leasing TPU power from Google’s cloud business as soon as next year.
A Google spokesperson told CNBC that the company is seeing growing demand for both its own TPUs and Nvidia’s GPUs.
The spokesperson said Google Cloud will continue supporting both technologies, as it has for several years.
Google released its first tensor processing unit in 2018, designing the chip primarily for its own cloud operations. The company has since developed multiple upgraded versions built to handle increasingly complex artificial intelligence tasks.
Analysts say the customized nature of TPUs gives Google a distinct advantage over competitors. The specialized design allows the company to deliver highly efficient hardware tailored for AI workloads.
If Meta ultimately turns to Google’s tensor processing units, it would represent a major boost for Google and a clear vote of confidence in the technology.
Such a shift could strengthen Google’s standing in the race to supply advanced AI hardware.
Broadcom, which works with Google on TPU design, traded more than 2% higher in premarket activity on Tuesday. The stock’s move came after an 11% jump in the previous session.
Nvidia continues to hold a commanding position in the AI hardware market, with its graphics processing units serving as the backbone of the sector’s fast-growing infrastructure.
Industry analysts note that Nvidia’s lead is expected to remain intact for now, even as rivals push new technologies into the field.
Google’s tensor processing units have added fresh competition to the semiconductor landscape.
Their rise comes as companies investing heavily in AI systems look for a broader mix of chip suppliers to lessen their reliance on Nvidia.
Meta remains one of the largest investors in artificial intelligence infrastructure, with the company expecting to spend between $70 billion and $72 billion this year.
Its heavy spending underscores the rapid acceleration of AI development across the tech industry.
The latest market moves come as analysts continue to debate whether technology valuations are becoming inflated and whether an “AI bubble” is taking shape. Nvidia has been at the center of that discussion.
The company issued a stronger-than-expected sales outlook last week, yet technology stocks still retreated afterward, reflecting ongoing uncertainty in the sector.
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