Nvidia shares fall 3% on report Meta will use Google AI chips
Jensen Huang, founder and CEO of NVIDIA, conducts a Q&A session at a press conference during the APEC CEO summit in Gyeongju, South Korea, on October 31, 2025.
Woohae Cho | Getty Images News | Getty Images
Nvidia shares fell on Tuesday Information It has been reported that Meta is considering using chips designed by Google.
Shares of Nvidia were 3.2% lower in premarket trading. Google-parent Alphabet It was trading up 2.1%.
On Monday, The Information reported that Meta is considering using Google’s tensor processing units (TPUs) in its data centers in 2027. Meta may also lease TPUs from Google’s cloud unit next year, the publication reported.
Google released the first-generation TPU in 2018, and it was initially designed for its own internal use in its cloud computing business. Since then, Google has released more advanced versions of its chip designed to handle AI workloads.
TPUs are a customized chip, and experts say this gives Google an advantage over its competitors because it can offer customers a product that is highly efficient for artificial intelligence.
If Meta uses TPUs, it would be a huge win for Google and a potential validation of the technology.
Nvidia continues to be the market leader, with graphics processing units (GPUs) becoming the main piece of hardware supporting the massive AI infrastructure buildout. While Nvidia’s dominance is unlikely to be displaced in the near term, Google’s TPUs are further increasing competition in the AI semiconductor market.
Companies building artificial intelligence infrastructure are seeking more diverse chip supplies to reduce dependence on Nvidia.
Meta is among the biggest spenders on AI infrastructure, and the company predicts capital expenditures this year will be between $70 billion and $72 billion.
