Google plans to sell TPUs directly to Meta, potentially further eroding NVIDIA's market.

Odaily News Google’s parent company Alphabet (GOOG.O) is in talks with companies such as Meta (META.O) to open up the usage rights of its self-developed Tensor AI chips, further expanding its competitive landscape with Nvidia (NVDA.O). As a result of this news, Google and its AI chip partner Broadcom rose in after-hours trading, while Nvidia and AMD saw their stock prices fall. Traditionally, Google has only deployed its self-developed TPUs in its own data centers and leased Computing Power to customers. However, U.S. tech media The Information reported on Monday evening local time that Google now plans to sell TPU chips directly to customers for deployment in their own data centers. Meta is considering purchasing billions of dollars worth of Google TPU chips for its data centers starting in 2027, while also planning to rent TPU Computing Power from Google Cloud as early as 2026. Currently, Meta’s AI business mainly relies on Nvidia GPUs. This represents a potentially huge emerging market for Google and Broadcom, which jointly design Tensor chips. At the same time, it could create significant competitive pressure on Nvidia and AMD, potentially impacting the latter's sales and pricing power. (Jin10)