Nvidia’s stock fell after a report suggested Meta may shift some of its future AI spending to Google.
According to The Information, Meta is in talks to spend billions on Google’s tensor processing units (TPUs) and could start renting the chips through its cloud services in 2027.
The move would lessen Meta’s reliance on Nvidia, whose processors power most advanced AI systems today.
The report shook the market: Alphabet shares climbed about 2.7% in late trading, while Nvidia dropped by roughly the same amount.
A deal with Meta would strengthen Google’s push to position TPUs as a serious alternative to Nvidia’s industry-leading chips.
Google already has a major supply agreement with AI company Anthropic, and interest is building as more firms worry about relying too heavily on a single chip provider.
Still, Nvidia remains the dominant force in the AI chip race.