Nvidia stock takes 6.7% hit on reports of potential Meta-Google chips deal — What we know

Artificial intelligence (AI) chipmaker Nvidia's stock took a 6.7% hit on reports that tech giants Meta and Alphabet are in discussions for Google chips, Bloomberg reported on 25 November.

Mark Zuckerberg's Meta Platforms is in talks with Alphabet to rent Google Cloud's chips from next year and to spend billions for the chips in its data centres from 2027, according to a report by The Information, citing sources.

Notably, Meta has been among Nvidia's biggest customers since 2022. In 2025, the company announced $600 billion investment in US infrastructure and jobs over the next three years, including in AI data centres, as per a Reuters report.

Google Cloud's tensor processing units or TPUs, are an alternative when supplies of Nvidia chips has been low. According to the TI report, Google is pushing TPUs, as a cheaper alternative to Nvidia chips for companies that require higher security standards, and aims to grab 10% of Nvidia's revenue from the business.

Reuters reached out to Google, Meta and Nvidia, but did not get immediate responses to its queries on the issue. Meta and Google representatives did not respond to Bloomberg queries.

Nvidia stock takes hit on potential Meta-Google chip deal

Nvidia stock fell 2.7% in after-hours trading, while Alphabet gained 2.7% largely due to enthusiasm over its latest Gemini AI model version.

Asian stocks related to Alphabet also jumped surged early on 25 November in Asia trading. In South Korea, IsuPetasys Co., which supplies multilayered boards to Alphabet, jumped 18% to a new intraday record. In Taiwan, MediaTek Inc. shares rose almost 5%.

Prior to the possible Meta deal, Google has signed a deal with Anthropic PBC up to 1 million chips, which Seaport analyst Jay Goldberg called “really powerful validation” for TPUs. He added, “A lot of people were already thinking about it, and a lot more people are probably thinking about it now.”

A deal with Meta — one of the biggest spenders globally on data centers and AI development — would mark a win for Google. But much depends on whether the tensor chips can demonstrate the power efficiency and computing muscle necessary to become a viable option in the long run, the Bloomberg report noted.

What are Google's TPU chips?

Developed over 10 years back for AI tasks, the tensor chip is gaining momentum outside Google as a way to train and run complex AI models, especially as an alternative to Nvidia, where overreliance on the company has become a worry, the BB report noted. It added that even rival Advanced Micro Devices Inc. (AMD) is a distant runner-up against Nvidia in the AI chips space.

Taking its leadership in the video games and visual effect applications through its Graphics processing units, or GPUs, Nvidia has long dominated the chips markets and made a well-timed turn to AI, as their options can handle large amounts of data and computations.

TPUs, on the other hand, are a type of specialized product known as application-specific integrated circuits, or microchips that were designed for a discrete purpose, the report added.

The tensor chips were also adapted as an accelerator for AI and machine learning tasks in Google’s own DeepMind unit to develop the Gemini model. The ability to customise the chips has benefited the AI teams.

(With reports from Reuters and Bloomberg)